District of Connecticut

John H. Durham, United States Attorney for the District of Connecticut, today announced that NICHOLAS AURORA JR., 33, of Hamden, waived his right to be indicted and pleaded guilty yesterday 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 AURORA’s purchase and redistribution of steroids.

The investigation revealed that AURORA was purchasing steroids from his source of supply every two weeks.  He personally used some of the steroids, and sold some, at a profit, to coworkers.

AURORA is a correctional officer with the Connecticut Department of Correction.

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.

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

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.

John H. Durham, United States Attorney for the District of Connecticut, today announced that ELIAS ESCARRAMAN 35, formerly of Springfield and Worcester, Massachusetts, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for trafficking fentanyl. 

According to court documents and statements made in court, an investigation revealed that ESCARRAMAN was traveling from Massachusetts to the Norwich, Connecticut, area approximately twice a week to distribute what he called “china white,” a mixture of heroin and fentanyl.  In April and May, investigators made multiple controlled purchases of “china white” from ESCARRAMAN, including on May 4, 2017, when investigators purchased 1,000 bags of the drug for $2,500.  Investigators then arranged to purchase 2,000 bags of “china white” from ESCARRAMAN in exchange for $5,000.  On May 15, ESCARRAMAN was arrested after he arrived at the meeting location in Norwich in possession of approximately 2,000 bags of the drug.

Lab analysis determined that ESCARRAMAN possessed and distributed more than 66 grams of fentanyl during the investigation.

ESCARRAMAN has been detained since his arrest.  On November 15, he pleaded guilty to one count of possession with intent to distribute fentanyl.

As part of the sentence, Judge Bryant ordered ESCARRAMAN to forfeit a 2008 Mercedes-Benz ML350 that ESCARRAMAN drove to the meet location on May 15 and was seized at the time of his arrest.

This matter was investigated by the Federal Bureau of Investigation, the Norwich Police Department and the Springfield Police Department.  The case was prosecuted by Assistant U.S. Attorney Dave Vatti.

 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 Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven returned a 20-count indictment yesterday charging ROBERT V. MATTHEWS, 60, and LESLIE R. EVANS, 70, both of Palm Beach, Florida, with various fraud and money laundering offenses stemming from a scheme that defrauded foreign investors

Matthews and Evans were arrested this morning in Florida and appeared in U.S. District Court for the Southern District of Florida, in West Palm Beach.  Matthews was detained pending a detention hearing that is scheduled for March 19 at 10 a.m.  Evans was released on a $250,000 bond.

According to the indictment, Robert Matthews, a real estate developer who maintained residences in both Florida and Connecticut, was the developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach.  Evans is a real estate attorney.

The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S.  Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects.  One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.

The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014.  Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009.  In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC.  However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.

The indictment alleges that Robert Matthews, Evans and others defrauded EB-5 investors, SARC and the one-percent owner of PHH by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project.  EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC.  SARC, in turn, provided EB-5 money earmarked for PHH use either into an account controlled by Robert Matthews, Evans and their agents, or into Evans’ Interest on Trust Account (“IOTA”) that was used to maintain his clients’ funds.

The indictment alleges that, while Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company.  The indictment further alleges that Robert Matthews, Evans and others used EB-5 funding for purposes not related to the PHH project, including for Robert Matthews’ personal gain.  In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.

As part of this alleged scheme, Robert Matthews, Evans and others moved investor funds through various bank accounts located in Connecticut and Florida.  The funds were used to pay Robert Matthews’ credit card debts, to assist in Matthews’ purchase of a 151-foot yacht, and to purchase two properties located in Washington Depot, Connecticut.  One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure.  Robert Matthews, Evans, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.

Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016.  He also has operated several restaurants in Florida and Connecticut.

The indictment charges Robert Matthews with eight counts of wire fraud, and offense that carries a maximum term of imprisonment of 20 years, one count of bank fraud, an offense that carries a maximum term of imprisonment of 30 years, one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years, and 10 counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years.

The indictment charges Evans with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank and wire fraud, and one count of illegal monetary transactions.

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

On March 7, 2018, Gerry Matthews, 57, of Middlebury, Connecticut, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit wire fraud.  On March 12, 2018, Laudano, 48, of Boynton Beach, Florida, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions.  They await sentencing.

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. Attorney John T. Pierpont, Jr.

John H. Durham, United States Attorney for the District of Connecticut, announced that DIMAS ESCOBAR, 41, a citizen of Guatemala last residing in New Britain, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment for illegally reentering the U.S. after being deported for a sex assault conviction.

According to court documents and statements made in court, ESCOBAR was admitted to the U.S. as a lawful permanent resident in November 2004.

In October 2011, ESCOBAR was convicted in state court of sexual assault in the second degree and was sentenced to eight years of incarceration, execution suspended after 18 months, and 10 years of probation.  He also was subject to mandatory sex offender registration.

In May 2013, ESCOBAR was deported from the U.S. to Guatemala.

On June 7, 2017, Plainville Police alerted ICE to ESCOBAR’s presence in the U.S.  On June 14, ICE officers arrested ESCOBAR following a traffic stop in New Britain.

ESCOBAR has been detained since his arrest.  On December 21, 2017, he pleaded guilty to one count of reentry of a removed alien.

Judge Thompson ordered the sentence to run concurrently with a two-year state sentence that ESCOBAR is currently serving for a probation violation.

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

John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that PASQUALE F. FURANO, 48, of Greenwich, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of tax evasion.

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

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

Judge Meyer scheduled sentencing for June 8, 2018, at which time FURANO faces a maximum term of imprisonment of five years.

On October 16, 2014, IRS special agents conducted a court-authorized search of FURANO’s residence and seized handwritten business records and $613,842 in cash.  FURANO has agreed that the seized cash will be applied to his outstanding tax liability.  He also has agreed to make restitution to the IRS for the remaining penalties and interest for 2009 to 2013, which, as of February 1, 2018, are estimated to be an additional $480,179.  FURANO also has agreed to pay the Connecticut Department of Revenue Services (DRS) $112,360 in sales tax he collected from his customers from 2009 to 2013, but did not pay to the DRS.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that ANDREW DEME, 52, of Fort Lauderdale, Florida, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from an investment fraud scheme.

According to court documents and statements made in court, DEME was the President and sole Director of Waters Club Worldwide, Inc. (“WCW”).  In November 2016, WCW completed a merger with Petrus Resources Corporation and the merged company subsequently changed its name to Waters Club Holdings, Inc. (“Waters Club”).  DEME became President, Chief Executive Office and Chief Financial Officer of Waters Club.  According to a Waters Club document used to solicit investors and business partners, Waters Club sought to “introduce a revolutionary Sharing Economy model to yachting” by “form[ing] a membership-based Club with a fleet of yachts strategically located in the world’s leading cruising regions that members can share and use interchangeably for their yachting vacations.”

In pleading guilty, DEME admitted that promoters he hired made certain misrepresentations to prospective investors in Waters Club, including that money would be used to develop the business and fund the operations of Waters Club, and that promoters were not being paid commissions for recruiting investors.  In truth, DEME knew that approximately half of all the money paid by investors for shares of Waters Club was paid to the promoters as sales commissions.  Due in part to the payments to promoters, which totaled approximately $605,204, Waters Club lacked the capital to develop its membership-based club, did not pursue an IPO, and the shares purchased by investors were unsalable.

One of the victims of this investment scheme was a Connecticut resident who invested $475,000 in Waters Club.

DEME pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years.  Judge Meyer scheduled sentencing for June 7, 2018.

DEME has been released on a $100,000 bond since his arrest on December 5, 2017.

Two Waters Club promoters, Thomas Heaphy, Jr. and Brian Ferraioli, both of New York, previously pleaded guilty to the same charge.  Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock.  Heaphy’s total gain from the scheme was $307,658, and Ferraioli’s total gain was $297,546.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, today announced that MOHSEN YOUSSEF, 27, formerly of Vernon, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 63 months of imprisonment, followed by three years of supervised release, for fraud offenses relating to a scheme to secure more than $3 million in funding for his purported pita manufacturing business.

According to court documents and statements made in court, beginning in approximately October 2011, YOUSSEF defrauded various banks, a corporate leasing and vendor finance company, and the Connecticut Department of Economic and Community Development, in a scheme to secure funding for equipment purchases for his company, Amoun Pita and Distribution LLC (“Amoun Pita”), and other companies he controlled.  According to its business plan, Amoun Pita was a bakery that manufactured pocket pita bread from a production facility in South Windsor, Connecticut.

As part of the scheme, YOUSSEF provided false information when applying for loans, lines of credit, lease financing and state grants, purportedly to finance the acquisition of new pita manufacturing equipment, other machinery and inventory related to his businesses.  The false information included documentation that inflated the assets and income of YOUSSEF and his companies, as well as fraudulently created invoices purporting to document equipment purchases that, in fact, never occurred.  In order to induce victims to rely on the invoices he provided, YOUSSEF created marketing materials and websites for non-existent vendors.

YOUSSEF caused more than $3 million in losses through this scheme.

The investigation revealed that YOUSEFF also defrauded a property owner who entered into an agreement to sell the land on which Amoun Pita was located.

Judge Arterton ordered YOUSSEF to pay the victim lenders and the defrauded property owner a total of $3,746,603 in restitution.

YOUSSEF, who has dual U.S and Egyptian citizenship, moved to Canada in 2014.  On Oct 22, 2015, a grand jury returned a 14-count indictment charging YOUSSEF with various fraud offenses.  He was arrested in Canada on March 1, 2017.  On October 26, 2017, he pleaded guilty to one count of bank fraud and one count of mail fraud.

YOUSSEF has been detained since his arrest.

This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Quebec Provincial Police RELEX Unit, Montreal Police Service and Royal Canadian Mounted Police.  The case was prosecuted by Assistant U.S. Attorneys David E. Novick and Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE GREGORY CHARON, also known as “Yoshi,” 32, of Danbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by four years of supervised release, for distributing heroin.  Judge Shea also ordered CHARON to serve the first six months of his supervised release in home confinement.

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 April 9, 2017, the Danbury Police Department responded to a Danbury residence on a report of an untimely death of a woman.  Investigators collected from the scene three cellphones, a bottle of methadone and an empty glassine bag marked with a particular brand stamp.  Testing of the contents of the bag confirmed that it contained heroin. 

The Office of the Chief Medical Examiner determined that the victim died on April 8, 2017, as a result of a methadone and benzodiazepine overdose.

In May 2017, investigators made two controlled purchases of heroin from CHARON.  Several of the bags of heroin purchased on both occasions were marked with the same brand stamp that was on the empty bag found in the overdose victim’s residence.

CHARON has been detained since his arrest on a federal criminal complaint on September 12, 2017.  On December 21, he pleaded guilty to one count of distribution of heroin.

This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, the Danbury Police Department and the Darien Police Department.  The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police.  This case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David C. Nelson.

John H. Durham, United States Attorney for the District of Connecticut, announced that JASON WALKER, 30, of Ansonia, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).

According to court documents and statements made in court, WALKER was a member of a drug trafficking organization that trafficked large quantities of crack cocaine throughout the Naugatuck Valley.  The investigation revealed that members of the organization shared the same cellphone to service drug customers in shifts over a 24-hour period.   Members of the drug trafficking organization also shared vehicles and serviced customers together.  Between May and September 2017, investigators made multiple controlled purchases of crack from WALKER and other members of the drug trafficking organization.

WALKER was arrested on November 15, 2017.

Judge Meyer scheduled sentencing for June 6, 2018, at which time WALKER faces a maximum term of imprisonment of 20 years.  WALKER is currently detained.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Ansonia and Derby Police Departments.  This 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 DOMINICK PACIFICO, 34, of Stony Point, New York, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, in May 2017, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force began an investigation into the Stamford-area cocaine trafficking activity of Stephen Mazzo.  On May 31, 2017, investigators conducting surveillance on Mazzo observed Mazzo 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 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.

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. 

Mazzo has pleaded guilty to a related charge and awaits sentencing.

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.  The case is being prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.

John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID NIKOLASHVILI, 52, a citizen of the Republic of Georgia residing in Queens, New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by two years of supervised release, for operating an immigration fraud scheme.  Judge Chatigny also ordered NIKOLASHVILI to pay a $12,000 fine.

According to court documents and statements made in court, NIKOLASHVILI, formerly of Stamford, Connecticut, operated an immigration fraud scheme through which he attempted to obtain false immigration status from U.S. Citizenship and Immigration Services (USCIS) for at least 60 citizens of European countries.  As part of the scheme, after aliens paid NIKOLASHVILI between $12,000 and $20,000, he would arrange sham marriages between the aliens and U.S. citizens in order to obtain immigration benefits for the aliens.  The U.S. citizens were paid to enter into the sham marriages.

NIKOLASHVILI was arrested on June 21, 2016.  On July 26, 2017, he pleaded guilty to one count of making a false swearing in an immigration matter.

NIKOLASHVILI, who is released on a $75,000 bond, was ordered to report to prison on April 27, 2018.  He faces immigration proceedings when he is released from prison.

All of the citizenship cases identified in this scheme have been reviewed by USCIS Fraud Detection and National Security and proper adjudicative action was taken.

This investigation was conducted by Homeland Security Investigations, U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security Unit, and U.S. Department of State, Bureau of Diplomatic Security.  The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

John H. Durham, United States Attorney for the District of Connecticut, announced that MILES PRICE, also known as “Molly Rock,” 29, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 144 months of imprisonment, followed by five years of supervised release, for racketeering, firearm possession and drug distribution offenses.

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.  PRICE was an associate of RSGB.

On April 20, 2011, Benton recruited PRICE to assist in the robbery of money and marijuana from Kevin Lee of New Haven.  On that date, Benton, PRICE, Luis “Chewie” Padilla and Rodrigo “Rico” Ramirez drove to the vicinity of Lee’s residence.  Benton, PRICE and Padilla 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.

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

In 2014, as part of an unrelated investigation, law enforcement conducted seven controlled purchases of crack from PRICE.  On April 12, 2014, PRICE sold a .44 caliber revolver and a .22 caliber pistol to an individual working with law enforcement.

PRICE has been detained since his arrest on June 18, 2014.  On October 6, 2015, he pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of possession with intent to distribute, and distribution of cocaine base (“crack”), and one count of possession of a firearm by a previously convicted felon.

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 Ramirez 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.  Padilla and Ramirez await 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, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that MICHAEL D. MIR, 41, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to a federal tax offense.

According to court documents and statements made in court, MIR prepared more than 3300 federal tax returns for the 2012 through 2015 tax years through a tax return preparation practice he operated in Waterbury.  MIR falsified information on numerous returns that he prepared for clients by fabricating business expenses, or by inflating deductible medical and dental expenses.  For the 2012 through 2014 tax years, MIR deposited more than $400,000 in income generated by his tax preparation business into his personal bank account.  However, MIR did not report any income from his tax preparation business on his 2013 personal income tax return, and he reported only $18,500 in income from his tax preparation business on his 2014 return.  MIR did not file a personal income tax return for 2015.

Through MIR’s preparation of false tax returns, and the underpayment of his own taxes, the government lost a total of $406,679.

MIR pleaded guilty to one count of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years, a fine of up to approximately $800,000, and restitution.  Judge Shea scheduled sentencing for June 1, 2018.

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

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Department of Revenue Services.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

John H. Durham, United States Attorney for the District of Connecticut, announced that that a federal grand jury in Hartford returned an indictment today charging KENNETH MIX, 59, of Ebensburg, Pennsylvania, with one count of making a false statement. 

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

MIX was the Equipment Supervisor for Company A.  The indictment alleges that, between approximately January 2012 and January 2015, MIX participated in the creation of false or fictitious Certificates of Unit Test/Examination of Material Handling Device for the UBI vehicles in Company A’s fleet.  The Certificates represented that a UBI vehicle was examined and that the examination met federal requirements when MIX knew that, in fact, an examination was not conducted as set forth on the Certificates.

If convicted of the offense, MIX 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 U.S. Department of Transportation – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.

John H. Durham, United States Attorney for the District of Connecticut, announced that MUHAMMAD ISMAIL, 67, of Meriden, and KAMRAN KHAN, 38, of Hamden, pleaded guilty today in Bridgeport federal court to money laundering in connection with funds they received for the unlawful export of goods to Pakistan.  A third defendant, Imran Khan, 43, of North Haven, previously pleaded guilty to violating U.S. export laws.

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

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

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

When they are sentenced, Ismail and Kamran Khan face a maximum term of imprisonment of 20 years.  Since the time of their arrests in December 2016, Ismail has been released on a $50,000 bond, and Kamran Khan has been released on a $100,000 bond.

Ismail and Kamran Khan are both citizens of Pakistan and lawful permanent residents of the U.S.

On June 1, 2017, Imran Khan pleaded guilty to one count of violating the International Emergency Economic Powers Act.  In pleading guilty, KHAN specifically admitted that, between August 2012 and January 2013, he procured, received and exported to PAEC an Alpha Duo Spectrometer without a license to do so.  He is released on a $100,000 bond pending sentencing.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that MODESTO BARETT-MEDINA, 49, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment, followed by three years of supervised release, for his role in a heroin trafficking ring.

 According to court documents and statements made in court, on October 21, 2016, the Baldwin County Sheriff’s Office in Alabama conducted a motor vehicle stop of a car hauler that was carrying a 2012 Chevrolet Malibu.  A search of the Malibu, which was registered to Onel Arana-Gervacio, revealed that it contained a hidden compartment (“trap”), which is commonly used to conceal and transport illegal contraband, including narcotics, firearms and currency.  Law enforcement officials obtained court authorization to install tracking devices on the vehicle and, between October 2016 and January 2017, HSI agents observed it at various locations in Connecticut and Rhode Island.

On January 17, 2017, agents located the vehicle at 1091 Maple Avenue in Hartford.  On January 20, surveillance officers observed activity on another vehicle located at the Maple Avenue residence consistent with manipulating a mechanical hidden compartment.  Officers then observed Arana placing two duffel bags into that second vehicle and then driving off in the vehicle with BARETT.  At approximately 8:30 p.m., a Hartford Police cruiser pulled the car over.  The vehicle also contained a hidden trap, but a search revealed no contraband.

A subsequent search of 1091 Maple Avenue revealed more than six kilograms of heroin, approximately 500 grams of cocaine and a “finger press,” which is used to process bulk quantities of heroin into 10-gram-bags known as “fingers.”  Agents also seized drug distribution materials, including sifters, grinders, scales, vacuum sealers and kilo wrappers, which were coated in heroin residue and field-tested positive for the presence of fentanyl.

Agents then searched the Malibu, which was located in the garage of 1091 Maple Avenue, and recovered approximately $260,000 in cash from inside the trap.

Laboratory testing of the seized heroin revealed that some of it contained fentanyl.

BARETT has been detained since his arrest on January 20, 2017.  On September 8, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.

BARETT faces immigration proceedings when he completes his prison term.

Arana, who pleaded guilty to related charges, awaits sentencing.

This matter has been investigated by Homeland Security Investigations (HSI), the Hartford Police Department and the Connecticut State Police, with the assistance of the Baldwin County (Ala.) Sheriff’s Office.  The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and David T. Huang.

John H. Durham, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that MICKEY FRED, also known as “Frankie,” 39, of Bridgeport, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, fentanyl. 

FRED appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.

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.

As alleged in court document, in the afternoon of September 6, 2017, Bridgeport Police and emergency medical personal responded to a 911 call for an unresponsive woman located on the front porch of a Bridgeport residence.  The victim, who was 32, was transported to the hospital where she was pronounced deceased.  Officers collected evidence from the scene, including wax folds containing suspected heroin, and the victim’s cell phone.

Subsequent laboratory analysis of the wax folds revealed the presence of fentanyl, and the Office of the Chief Medical Examiner reported the victim’s cause of death to be “acute fentanyl intoxication due to the combined effects of fentanyl, alprazolam and diphenhydramine.

It is alleged that FRED supplied fentanyl to the victim shortly before the victim died.

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 Drug Enforcement Administration’s New Haven Task Force, Monroe Police Department and Bridgeport Police Department.  The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.

John H. Durham, United States Attorney for the District of Connecticut, today announced that PABLO TEXIDOR, 40, of West Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by one year of supervised release, for importing a tableting machine and tableting dies to manufacture fake oxycodone pills that contained heroin.

According to court documents and statements made in court, on March 15, 2017, U.S. Customs and Border Protection officials inspected a parcel from China that was being shipped to TEXIDOR’s West Hartford residence.  The parcel, which was described as containing “machine spare parts,” contained one set of tablet press dies. 

Pill presses are often used by individuals engaged in the manufacturing of distribution-quantities of pills or capsules.  A pill die is used with a pill press to cut and mark tablets.

The investigation revealed that five parcels had been shipped previously from China to TEXIDOR’s residence.  Four of the parcels were described as containing “machine spare parts,” and one parcel was described as containing a “hole puncher machine for sample.”

On March 30, 2017, DEA agents searched TEXIDOR’s residence and seized a tableting press, seven pill dies, 99 fake oxycodone pills, a bag containing approximately four grams of heroin, and a bag containing approximately 500 grams of a binding powder.  A subsequent lab test revealed that the pills contained no oxycodone, but instead contained heroin. 

On August 29, 2017, TEXIDOR pleaded guilty to one count of importation of any product used to manufacture a controlled substance.

Judge Shea ordered TEXIDOR, who is released on a $50,000 bond, to report to prison on May 1.

This matter was investigated by the DEA’s New Haven Tactical Diversion Squad, Homeland Security Investigations and U.S. Customs and Border Protection, with the assistance of the West Hartford Police Department.  The case was prosecuted by Assistant U.S. Attorneys Lauren Clark and Michael McGarry.

John H. Durham, United States Attorney for the District of Connecticut, today announced that SHANICE GOFFE, 32, of New Haven, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by three years of supervised release, for her role in a marijuana trafficking and money laundering conspiracy.

According to court documents and statements made in court, in 2013, Homeland Security Investigations (HSI), U.S. Postal Inspection Service and Connecticut State Police began an investigation into individuals who were moving large amounts of marijuana from the Southwestern United States to Connecticut.  During the investigation, investigators intercepted four packages, each containing approximately eight kilograms of marijuana, from the U.S. Mail, and made multiple controlled purchases of the drug from a member of the trafficking ring.

On February 1, 2017, investigators conducted a court-authorized search of a Hamden apartment that GOFFE shared with her boyfriend, and a storage unit in West Haven that was rented in her name.  A search of the residence revealed more than one pound of marijuana, a loaded 9mm handgun, boxes of .45 caliber ammunition, $62,409 in cash, and numerous false identifications, including a U.S. passport, all of which contained a photo of her boyfriend.  A search of the storage unit revealed approximately 33 kilograms of marijuana, ammunition and firearm magazines, additional false identifications, and $350,100 in cash.

Investigators also seized a 2014 BMW X6, a 2016 Honda Accord, and a 2008 Honda Odyssey, all of which were registered to GOFFE and had been purchased with proceeds of the marijuana trafficking enterprise.

GOFFE was arrested on March 9, 2017.  On November 20, 2017, she pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 50 kilograms or more of marijuana, and one count of conspiracy to commit money laundering.

Judge Thompson ordered GOFFE to forfeit her interest in the seized cash and the three vehicles.

GOFFE, who is released on bond, was ordered to report to prison on March 28.

GOFFE’s boyfriend has been indicted on marijuana trafficking, firearm possession and money laundering offenses, and is awaiting trial.  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 is being prosecuted by Assistant U.S. Attorney Rahul Kale.

John H. Durham, United States Attorney for the District of Connecticut, announced that AGUSTIN CIRINO, 30, of Hamden, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing fentanyl disguised as oxycodone.  Chief Judge Hall also ordered CIRINO to perform 200 hours of community service.

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 March 9, 2017, the Hamden Police Department and emergency medical personnel responded to a Hamden residence where a 30-year-old male was found deceased.  At the scene, investigators seized drug and non-drug evidence, including three suspected oxycodone tablets and the victim’s cellphone.  The investigation revealed that the victim arranged to purchase oxycodone tablets from CIRINO on March 7 and March 8.

The DEA Northeast Laboratory subsequently determined that the seized tablets contained fentanyl, acetaminophen and dipyrone, not oxycodone.  The Office of the Chief Medical Examiner also determined that the victim died as a result of “acute fentanyl toxicity, clonazepam, duloxetine use.”

CIRINO was arrested on May 9, 2017.  On November 16, he pleaded guilty to one count of possession with intent to distribute, and distribution of fentanyl.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM CARL BARTLETT, 66, of Eastpoint, Florida, formerly of Cheshire, Connecticut, was sentenced today by U.S. Magistrate Judge William I. Garfinkel in Bridgeport to three years of probation for illegally transporting protected wildlife.  Judge Garfinkel also ordered BARTLETT to pay a $5,000 fine and perform 300 hours of community service.

According to court documents and statements made in court, BARTLETT is a snake and reptile collector.  In July 2012, BARTLETT shipped via overnight mail courier 10 Outer Banks kingsnakes from Connecticut to an individual in Emporium, Pennsylvania.  Prior to that date, BARTLETT collected a male and female kingsnake from the Outer Banks in violation of North Carolina law.  In North Carolina, the Outer Banks kingsnake is designated as a species of special concern.  BARTLETT then bred the snakes in Connecticut.

Between April 29 and May 13, 2015, BARTLETT transported five Coastal Plain milk snakes from the Chesapeake Forest and the Pocomoke River State Forest in Worcester County, Maryland, to his home in Connecticut.  The snakes were collected in violation of Maryland law. 

In May 2016, BARTLETT illegally collected four protected snakes and four lizards from the Pocomoke River State Forest, but was stopped by law enforcement before he could transport them to Connecticut.

On December 6, 2017, BARTLETT pleaded guilty to two counts of illegally transporting protected wildlife.

This matter was investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement and the Maryland Natural Resources Police.

BARTLETT is the fourth person prosecuted as part of “Operation Kingsnake,” a U.S. Fish and Wildlife investigation into individuals who trafficked hundreds of illegally collected snakes from 12 states, including Connecticut, and Canada.

This case was prosecuted by Assistant U.S. Attorney Hal Chen.

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 Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that THOMAS MALONE, 48, of New Haven, was arrested today on a criminal complaint charging him with embezzling nearly $1 million from a New Haven biotech company that receives federal research grants.

MALONE appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $50,000 bond.

As alleged in court documents, MALONE was the chief financial officer (CFO) of Artificial Cell Technologies, Inc. (ACT) of New Haven, a small biotech company that is currently working on developing better ways to deliver malaria and Respiratory Syncytial Virus vaccines to affected populations.  In addition to receiving funding from private investors, ACT has received approximately $4.1 million in grants from the National Institutes of Health (NIH) since 2008.  As the CFO, MALONE’s responsibilities included collecting, posting, and depositing investor and grant funds; tracking and reporting grant expenditures; managing accounts payable and cash disbursements; facilitating payroll; reconciling ACT credit card and bank accounts; and providing overall financial management.

It is alleged that in November 2016, ACT’s chief executive officer discovered that MALONE was paying himself approximately $660,000 in annual salary, far above the approximately $281,000 in salary he was entitled to receive.  Upon further review of payroll and other financial records, ACT’s CEO discovered that, for several years, MALONE had been writing checks to himself that were disguised as bonuses, that he had been giving himself unauthorized additional salary payments, that he had been using the ACT credit card for personal expenditures, and that he had used ACT’s funds to make unauthorized donations to an organization that MALONE personally supported.  A subsequent forensic audit revealed that, between 2012 and 2016, MALONE had embezzled approximately $950,000 from ACT.

The complaint charges MALONE with theft from a program involving federal funds, an offense that carries a maximum term of imprisonment of 10 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 U.S. Department of Health and Human Service, Office of Inspector General, and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

John H. Durham, United States Attorney for the District of Connecticut, announced that JEREMY WAVER, 31, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer to 84 months of imprisonment, followed by three years of supervised release, for distributing controlled substances.

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 2, 2017, Ansonia Police and emergency medical personnel responded to a report of an overdose death at an Ansonia residence.  At the residence, responders encountered a deceased 23-year-old female.  Investigators collected evidence including a hypodermic needle and several wax folds of a substance that was later determined to contain furanyl fentanyl.   Investigators also seized the victim’s iPhone.

The investigation revealed that, on April 1, the victim and another individual purchased heroin from WAVER in Waterbury.

WAVER was arrested in Waterbury on May 4.  At the time of his arrest, WAVER possessed more than 100 wax folds of substances that contained heroin, U-47700 (a synthetic opioid), fentanyl, and furanyl fentanyl.  In addition, WAVER possessed a quantity of crack cocaine.  Many of the folds were stamped with the same image found on the folds recovered at the scene of the victim’s overdose death.

On December 4, 2017, WAVER pleaded guilty to one count of possession with intent to distribute, and distribution of, controlled substances.

WAVER’s criminal history includes numerous drug convictions.

As part of the sentence, Judge Meyer ordered WAVER to pay restitution of $4,503.96 to the victim’s father to cover the a portion of the victim’s funeral expenses.

This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department.  The case was prosecuted by Assistant U.S. Attorney Jennifer Laraia. 

John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN LOONEY, 21, of Hamden was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation, the first six months of which LOONEY must spend in home confinement, for distributing oxycodone involved in an overdose 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 January 3, 2016, a 22-year-old male purchased 30 oxycodone pills from Tahir Farid, of Hamden, in exchange for $900.  On January 5, 2016, after consuming some of those pills, as well as other substances, the victim was found unresponsive at a friend’s residence in Weston.  He remains in a coma with no brain activity and, according to medical personnel, is in a “persistent vegetative state.”

The investigation revealed that, prior to the victim’s overdose, Wayne Bradbury, of Hamden, supplied oxycodone pills and marijuana to LOONEY, who sold the oxycodone pills to Farid, who then distributed a portion of them to the 22-year-old victim. 

On May 2, 2016, LOONEY pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.  Farid pleaded guilty to the same charge on April 26, 2016.  On July 18, 2017, Bradbury pleaded guilty to one count of distributing oxycodone and marijuana to an individual under 21 years of age, and one count of money laundering.

On November 30, 2016, Farid was sentenced to six months of imprisonment.  On February 5, 2018, Bradbury was sentenced to 18 months of imprisonment.

This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, U.S. Marshals Service, Weston Police Department and Monroe Police Department.  The case was prosecuted by Assistant U.S. Attorney Lauren Clark.

John H. Durham, United States Attorney for the District of Connecticut, announced that RONALD PEREZ, 30, of East Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 72 months of imprisonment, followed by four years of supervised release, for trafficking heroin.  Judge Thompson also ordered PEREZ to perform 100 hours of community service while on supervised release.

According to court documents and statements made in court, in 2016, the East Hartford Police Department received information that individuals were packaging and selling heroin from an apartment at 50 Forest Street in Hartford, and that there were guns in the apartment.  The apartment is directly across the street from Hartford Public High School.  A law enforcement investigation in August and September 2016 confirmed drug activity at the location.

On September 13, 2016, members of the Hartford Police Department, East Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Task Force executed a search warrant at the apartment and encountered PEREZ, Marcus Tyson and Byron Rivera inside.  A search of the apartment revealed more than 33,000 bags of heroin, approximately 283 grams of unpackaged heroin, three fentanyl patches, scales and other items used in the processing and packaging of heroin, two handguns and numerous rounds of ammunition.  PEREZ, Tyson and Rivera were arrested at that time.

On October 3, 2017, PEREZ pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.  Tyson and Perez also previously pleaded guilty and were sentenced to 60-month prison terms.

The FBI Task Force includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.

John H. Durham, United States Attorney for the District of Connecticut, today announced that ERIC GREEN, 31, of Bridgeport, pleaded guilty yesterday in Hartford federal court to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin.

According to court documents and statements made in court, GREEN was a member of a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico, and then distributed the drug in the Bridgeport area.  The investigation, which included multiple controlled purchases of heroin from GREEN, revealed that GREEN distributed more than three kilograms of heroin to his own customers.

On March 16, 2017, a grand jury in Hartford returned an indictment charging GREEN and six other individuals with heroin trafficking and related offenses.  GREEN was arrested on March 24, 2017.

GREEN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 20, at which time he faces a maximum term of imprisonment of life.

This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.

John H. Durham, United States Attorney for the District of Connecticut, today announced that JACOB FREEMAN, 22, of Ansonia, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).

According to court documents and statements made in court, FREEMAN was a member of a drug trafficking organization that trafficked large quantities of crack cocaine throughout the Naugatuck Valley.  The investigation revealed that members of the organization shared the same cellphone to service drug customers in shifts.  Between May and September 2017, investigators made multiple controlled purchases of crack from FREEMAN and other members of the drug trafficking organization.

Judge Meyer scheduled sentencing for May 30, 2018, at which time FREEMAN faces a maximum term of imprisonment of 20 years.

FREEMAN has been detained since his arrest on November 15, 2017.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Ansonia and Derby Police Departments.  This 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 CARLOS SANTIAGO, also known as “Carlito,” 51, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 72 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.

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

The investigation resulted in federal charges against 24 individuals.

SANTIAGO has been detained since his arrest on March 16, 2017.  On November 30, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.

Bienvenido Gonzalez and Antonio Gonzalez have pleaded guilty to related charges and await sentencing.

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

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

John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT V. GENTILE, 81, of Manchester, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 54 months of imprisonment, followed by three years of supervised release, for firearm offenses, and for violating the conditions of his supervised release from a prior federal conviction.  Judge Chatigny ordered GENTILE to serve the first six months of his supervised release in home confinement.

According to court documents and statements made in court, on February 10, 2012, GENTILE was arrested after a federal investigation had revealed that he was involved in the illegal distribution of prescription narcotics.  Subsequent court-authorized searches of GENTILE’s Manchester residence resulted in the seizure of 200 Percocet tablets packaged for distribution, two .38 caliber Smith & Wesson revolvers, a .22 caliber North American Arms revolver, a .22 caliber derringer, a 12-gauge pistol-grip shotgun, numerous rounds of ammunition, boxes of 12-gauge shotgun shells, five handgun silencers, other items and approximately $22,000 in cash.  GENTILE pleaded guilty to federal drug and firearm offenses and, on May 9, 2013, was sentenced to 30 months of imprisonment, followed by three years of supervised release.

On March 2, 2015, while on supervised release, GENTILE sold a .38 Colt Cobra revolver, which was loaded with five rounds of Smith & Wesson .38 Special ammunition, for $1,000 to an individual he knew to be a convicted felon.  The sale occurred at GENTILE’s residence, where the revolver had been hidden in a couch cushion.

GENTILE was arrested on a criminal complaint on April 17, 2015, and was ordered detained.  On April 28, 2015, a grand jury returned an indictment charging him with possession of ammunition by a convicted felon, and sale of a firearm to a convicted felon.

On May 2, 2016, FBI special agents executed an unrelated federal search warrant at GENTILE’s Manchester residence and seized a .22 caliber Browning semi-automatic pistol, a 9mm Walther semi-automatic pistol, a .380 caliber RPB Industries, M11-Al semi-automatic pistol, and an unregistered silencer.  On May 24, 2016, a grand jury returned an indictment charging GENTILE with one count of possession of firearms by a previously convicted felon, and one count of possession of an unregistered silencer.

On April 6, 2017, GENTILE pleaded guilty to one count of possession of ammunition by a previously convicted felon, one count of possession of firearms by a previously convicted felon, and one count of possession of an unregistered silencer.  GENTILE also admitted that he violated the terms and conditions of his supervised release.

Judge Chatigny sentenced GENTILE to 42 months of imprisonment for the three firearm offenses, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release.

GENTILE has been detained since his arrest on April 17, 2015.

This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case was prosecuted by U.S. Attorney John H. Durham.

John H. Durham, United States Attorney for the District of Connecticut, announced that DERRICK WHITE, also known as “Fly,” 53, of Hamden, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 188 months of imprisonment, followed by five years of supervised release, for committing armed robberies of the Allingtown Post Office in West Haven and the Wells Fargo Bank in Hamden on April 21, 2016.

According to court documents and statements made in court, on the morning of April 21, 2016, WHITE, Malcolm Haynes, Howard Bookert and another male drove in WHITE’s vehicle to the vicinity of the Allingtown Post Office located at 75 Farwell Avenue in West Haven.  WHITE, Bookert and Haynes, who was armed with a .22 caliber rifle, then entered the post office.  Haynes pointed the rifle at individuals who were in the lobby and the clerk behind the counter and directed them to stay away from the door.  WHITE then hopped over the counter, waved the postal clerk away from her station, removed the cash drawer from the counter and handed it to Bookert.  The robbers then fled with the drawer, which contained approximately $491.

In the afternoon of April 21, 2016, the four individuals drove to a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden.  Haynes, again armed with the rifle, WHITE and the other male entered the bank.  Haynes pointed the rifle in the direction of various employees as WHITE went behind the counter and removed approximately $9,287 from teller drawers.  During the robbery, the other male brandished what appeared to be a small black semi-automatic pistol.

WHITE and Bookert were apprehended in New Haven on April 21, 2016.  On that date, investigators recovered the firearm that Haynes used during the robberies, which Haynes had hidden in a plastic garbage bag behind a house in New Haven.  Haynes was arrested on May 23, 2016.  The three defendants have been detained since their arrests.

On January 25, 2017, WHITE pleaded guilty to one count of armed bank robbery. 

Haynes, of New Haven, and Bookert, of Hamden, previously pleaded guilty to related federal charges, and the fourth male was charged by the state.  On May 3, 2017, Haynes was sentenced to 90 months of imprisonment.  On August 31, 2017, Bookert was sentenced to approximately 16 months of imprisonment, time served.

WHITE’s criminal history spans more than 30 years and includes 10 prior convictions, including multiple robbery convictions.  In 1982, he shot an individual in the stomach and arm in a dispute over stolen gold chains.

This matter was investigated by the West Haven Police Department, Hamden Police Department, New Haven Police Department, Federal Bureau of Investigation and U.S. Postal Inspection Service.  The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.

John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that IRA MALKIN, 48, of Hamden, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of tax evasion.             

According to court documents and statements made in court, MALKIN worked as a principal salesman for Good Copy Printing Center Inc. (GCP), a printing company located in New Haven.  MALKIN earned substantial commissions from GCP based on sales made to customers.  Between approximately 2003 and 2012, GCP paid many of MALKIN’s personal expenses.  With MALKIN’s consent, GCP reduced MALKIN’s commissions by the amount of personal expenses the company paid.  GCP then reported to the IRS through filed W-2 forms that MALKIN had earned substantially less income than he truly earned.

In addition, GCP handled printing jobs for Comcast, which included GCP mailing out flyers and paying the relevant postage expense with the expectation that GCP would subsequently be reimbursed for that expense.  MALKIN had GCP pay the postage expense for the Comcast mailings, had Comcast reimburse him for the cost of the mailings, and then had GCP reduce his earned commissions by the amount of postage paid by GCP.  Through this arrangement, between approximately 2009 and 2012, GCP further underreported MALKIN’s income on W-2 forms filed with the IRS.

Through this scheme, MALKIN failed to pay $484,581 in federal income taxes.

Chief Judge Hall scheduled sentencing for May 22, 2018, at which time MALKIN faces a maximum term of imprisonment of five years.  He also has agreed to make full restitution to the IRS, and additional penalties and interest that have accrued on his unpaid taxes.

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that ANDREW CUNNINGHAM, 37, formerly of Windsor, has been charged by federal criminal complaint with one count of enticement of a minor to engage in illegal sexual activity.

The complaint alleges that, in March 2017, CUNNINGHAM began communicating with a 13-year-old female on Omegle, a website and mobile application designed to pair strangers for text and video chats.  CUNNINGHAM first told the minor victim that he was 17, and later stated he was 25.  CUNNINGHAM and the minor victim then communicated via text messaging and phone calls for approximately one week.  During that time, CUNNINGHAM enticed the minor victim to send him sexually explicit images of herself, and attempted to lure her to travel to Connecticut.

CUNNINGHAM appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford.  He has been in state custody since May 2, 2017 when he was arrested on state charges.  He previously pleaded guilty in state court to illegal sexual contact with a minor and enticement of a minor, and is currently serving a three-year state sentence.

If convicted of the federal charge, CUNNINGHAM faces a mandatory minimum term of imprisonment of 10 years. 

U.S. Attorney Durham stressed that a criminal complaint 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 Connecticut State Police, with the assistance of Connecticut State Parole.  The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.

John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN FERRAIOLI, 41, of Sayville, N.Y., waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from an investment fraud scheme.

According to court documents and statements made in court, this scheme involved 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, FERRAIOLI and Thomas Heaphy, Jr., solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”).  According to FERRAIOLI and his co-conspirators, 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.

In pleading guilty, FERRAIOLI admitted that he and his co-conspirators made certain misrepresentations to prospective investors in Waters Club, including that investors’ money would be used to develop the business and fund the operations of Waters Club, and that FERRAIOLI and his co-conspirators were being compensated with stock for recruiting investors.  In truth, FERRAIOLI and Heaphy received approximately half of all the money he induced investors in Waters Club to invest.  Due in part to the payments to FERRAIOLI and Heaphy, 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.

FERRAIOLI and Heaphy 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.  FERRAIOLI’s total gain from this scheme was $297,546, and Heaphy’s total gain was $307,658.

FERRAIOLI pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. 

On August 9, 2017, FERRAIOLI pleaded guilty in New Haven federal court to one count of conspiracy to commit mail and wire fraud and one count of tax evasion stemming from his role in an unrelated stock “pump and dump” scheme.  In that scheme, between approximately 2011 and July 2016, FERRAIOLI, Heaphy and others induced investors to purchase securities in shell companies with virtually no legitimate business activities.  After the share price of the securities became artificially inflated, certain of FERRAIOLI’s co-conspirators 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.

FERRAIOLI and Heaphy began to sell Waters Club securities after they learned that they were under federal investigation for the stock pump and dump scheme in the summer of 2016.

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

Heaphy, 43, of East Moriches, N.Y., previously pleaded guilty to charges stemming from both the stock pump and dump scheme and the Water’s Club investment fraud scheme.

FERRAIOLI and Heaphy are released on bond pending sentencing.  Sentencing dates have not been scheduled.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN CARLOS ACOSTA, also known as “Juan Carlos Acosta Santos,” 32, a citizen of El Salvador last residing in Manchester, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to six months of imprisonment for illegally reentering the U.S. after being deported.

According to court documents and statements made in court, on September 27, 2006, ACOSTA was convicted in Manchester Superior Court of assault in the first degree and sentenced to one year of imprisonment, time served, and a one-day conditional discharge.  On December 11, 2006, he was removed to El Salvador.

In February 2015, ACOSTA was arrested in East Hartford on charges of breach of peace in the second degree and interfering.  On April 17, 2015, he was removed to El Salvador without a resolution on the state charges.

In December 2015, ACOSTA was found in the U.S. near Rio Grande Valley, Texas.  On December 23, 2015, he was removed to El Salvador.

On February 12, 2017, the Connecticut State Police arrested ACOSTA for assault in the second degree with a weapon, and related misdemeanor offenses.

ACOSTA has been detained since arrest.  On November 30, 2017, he pleaded guilty to one count of illegal reentry of a removed alien.

The state charges against ACOSTA are pending in Rockville Superior Court.

This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.  The case was prosecuted by Assistant U.S. Attorney Hal Chen.

John H. Durham, United States Attorney for the District of Connecticut, announced that RODOLFO BOLIVAR TEPAN, 38, a citizen of Ecuador last residing in Danbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 19 months of imprisonment for illegally reentering the U.S. after being deported.

According to court documents and statements made in court, in February 2016, TEPAN was sentenced in Danbury Superior Court to 10 years of incarceration, execution suspended, and five years of probation, for risk of injury to a minor.  In October 2016, he was deported from the U.S. to Ecuador.

TEPAN illegally reentered the U.S. and, on May 12, 2017, was arrested by Danbury Police for failure to register as a sex offender.  He was convicted of the offense and, on July 28, was sentenced in state court to 18 months of incarceration.

TEPAN has been detained since his arrest.  On November 29, 2017, he pleaded guilty to one count of reentry of a removed alien.

Judge Shea ordered TEPAN’s federal sentence to be served concurrently with his state sentence.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that DARRYL MORRIS, also known as “King Sincere,” 33, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 168 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.

According to court documents and statements made in court, in November 2014, MORRIS met a 15-year-old girl who was working in prostitution in New York.  Shortly thereafter, MORRIS brought the minor victim to his home in Bridgeport and arranged to have advertisements of her prostitution services posted on Backpage.com.  The minor victim then began to see prostitution customers at MORRIS’s residence and gave the money she received to MORRIS.  MORRIS also drove the minor victim to other locations in Connecticut, New York, New Jersey, Massachusetts and Washington, D.C., where she saw prostitution customers.

The minor victim worked as a prostitute for MORRIS from November 2014 to April 2015, and from November 2015 to May 2016, seeing approximately 10 customers per day. 

MORRIS engaged in sexual activity with the minor victim, and began beating her a few weeks after she arrived in Bridgeport.      

On May 2, 2016, investigators found the minor victim at a hotel in East Hartford after she contacted her mother who then called police.  MORRIS had recently beaten the minor victim, who had visible scars and signs of physical abuse.  She also had a tattoo on the back of her neck with the name “King Sin” underneath a large bar code.

MORRIS has been detained since his arrest on August 16, 2016.  On May 12, 2017, he pleaded guilty to one count of sex trafficking of a minor.

Judge Meyer ordered MORRIS to pay the minor victim restitution of $100,000, which is a conservative estimate of how much money the minor victim earned in prostitution when she was with MORRIS.

This matter was investigated by the Federal Bureau of Investigation, Bridgeport Police Department, East Hartford Police Department, Stratford Police Department and New York Police Department.  The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Stephen B. Reynolds.

John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging LAVON YOUNG, 38, and DAVID C. EARL, 25, both of Union City, New Jersey, with bank robbery offenses.

According to the indictment, on January 27, 2018, YOUNG and EARL first attempted to rob a Key Bank branch in Branford, and then robbed a TD Bank branch on Route 81 in Killingworth of approximately $9,754.

YOUNG and EARL were arrested in East Haven on January 27 and were subsequently charged with multiple state offenses.  They have been detained since their arrests.

The indictment charges YOUNG and EARL with one count of attempted bank robbery and one count of bank robbery.  Each charge carries 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 the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that THOMAS HEAPHY, Jr., 43, of East Moriches, N.Y., waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from an investment fraud scheme.

According to court documents and statements made in court, this scheme involved 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 another promoter solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”).  According to HEAPHY and his co-conspirators, 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.

In pleading guilty, HEAPHY admitted that he and his co-conspirators made certain misrepresentations to prospective investors in Waters Club, including that investors’ money would be used to develop the business and fund the operations of Waters Club, and that HEAPHY and his co-conspirators were being compensated with stock for recruiting investors.  In truth, HEAPHY received approximately half of all the money he induced investors in Waters Club to invest.  Due in part to the payments to HEAPHY and the other promoter, 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 the other promoter 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 this scheme was $307,658.

HEAPHY pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. 

On July 28, 2017, HEAPHY pleaded guilty in New Haven federal court to one count of conspiracy to commit mail and wire fraud and one count of tax evasion stemming from his role in an unrelated stock “pump and dump” scheme.  In that scheme, between approximately 2011 and July 2016, HEAPHY and others induced investors to purchase securities in shell companies with virtually no legitimate business activities.  After the share price of the securities became artificially inflated, certain of HEAPHY’s co-conspirators 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 began to sell Waters Club securities after he learned that he was under federal investigation for the stock pump and dump scheme in the summer of 2016.

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

A sentencing date has not been scheduled.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, announced that MITCHELL ANDERSON, 53, of Bradenton, Florida, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, followed by three years of supervised release, for his role in a fraud scheme involving the redevelopment of Hartford’s Dillon Stadium and a plan to bring a professional soccer team to the city.  ANDERSON formerly resided in Avon, Connecticut.

According to court documents and the evidence introduced during the trial ANDERSON’s co-defendant, James C. Duckett, Jr., in September 2014, the City of Hartford entered into a professional services agreement with ANDERSON and his company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000-seat facility at the Dillon Stadium location.  Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan.  In February 2015, ANDERSON joined with Duckett who agreed to be the majority owner of the professional soccer team.  Duckett and ANDERSON represented to various city officials that PSMG and Duckett’s Black Diamond Consulting Group had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team.  Duckett represented that he was a former professional football player in the NFL and that Black Diamond was involved in a casino project and sports-related projects in Las Vegas and Atlanta.

Beginning in approximately March 2015, ANDERSON submitted invoices to the city for reimbursement to PSMG subcontractors working on the project.  However, rather than pay the total amounts owed to PSMG’s subcontractors, Duckett and ANDERSON directed more than $1 million that PSMG received from the city to themselves, PSMG, Black Diamond, and other entities not related to the Dillon Stadium project.  Duckett and ANDERSON also secured invoices from subcontractors who had not performed work for the project, which Duckett and ANDERSON caused to be submitted to the city as if the work had been performed.  Duckett and ANDERSON then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium.

The investigation revealed that Duckett used funds that the city provided to PSMG to purchase a Range Rover that cost approximately $120,000, to pay unrelated attorneys’ fees and a $20,000 “finder’s fee” to an individual, and for other personal expenses including luxury clothing and jewelry items.

ANDERSON has agreed to make restitution of more than $1.1 million to the City of Hartford and two subcontractors of the Dillon Stadium project.

ANDERSON and Duckett were arrested on June 23, 2016.  On February 6, 2017, ANDERSON pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud and one count of conducting illegal monetary transactions.

ANDERSON, who is released on a $100,000 bond, was ordered to report to prison on April 8, 2018.

On July 6, 2017, a jury found Duckett guilty of conspiracy, fraud and money laundering offenses stemming from the scheme.  On December 6, Judge Underhill sentenced him to 36 months of imprisonment.

This investigation was conducted by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.  The Task Force also includes members from the U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, and the U.S. Postal Inspection Service.  The Hartford Police Department assisted the investigation.

The case was prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.

Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.

John H. Durham, United States Attorney for the District of Connecticut, announced that CRAIG FRANCIS, also known as Horus Durjaya Bey, 44, of Windsor, pleaded guilty today in New Haven federal court to one count of filing a false tax return.

According to court documents and statements made in court, in February 2009, FRANCIS E-filed a 2008 federal income tax return that listed falsely inflated amounts of both interest income received and taxable income withheld by the government, and requested a fraudulent refund of $255,904.  The Internal Revenue Service issued the refund before determining that the tax return was fraudulent, and that FRANCIS was actually entitled to a refund of only $4,073.

FRANCIS spent more than $220,000 within five weeks of receiving the fraudulent refund.

FRANCIS is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 17, 2018, at which time he faces a maximum term of imprisonment of three years.  FRANCIS has agreed that, as of today’s date, he owes restitution to the IRS of $380,448.06, which includes interest and penalties.

FRANCIS was arrested on June 7, 2017, in Kissimmee, Florida.  He is released on a $250,000 bond pending sentencing.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that VANESSA VENCE-SMALL, 50, of New Windsor, New York, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of wire fraud arising from an embezzlement scheme.

According to court documents and statements made in court, VENCE-SMALL was the controller of Felix F. Callari, Inc., doing business as Continental BMW of Darien, an automobile dealership.  From October 2014 to June 2017, VENCE-SMALL made 65 unauthorized electronic fund transfers, totaling $904,659.29, from the dealership’s bank account to her personal American Express account.  VENCE-SMALL also issued and signed 28 checks drawn on the dealership’s bank account, in the total amount of $207,777.78, to pay various third parties, including credit card companies, contractors who performed work at her residence, and a different dealership from which she purchased a car.  She also incurred on company accounts an additional $31,452.08 in unauthorized credit card charges and reimbursements.

Judge Meyer scheduled sentencing for May 24, 2018, at which time VENCE-SMALL faces a maximum term of imprisonment of 20 years, a fine of up to approximately $2.3 million, and an order of full restitution.

VENCE-SMALL is released on a $100,000 bond pending sentencing.

This matter is being investigated by the U.S. Secret Service, Darien Police Department and Connecticut Financial Crimes Task Force.  This case is being prosecuted by Assistant U.S. Attorney Hal Chen. 

John H. Durham, 67, of Groton, was sworn in today as the presidentially appointed United States Attorney for the District of Connecticut by Chief U.S. District Judge Janet C. Hall in New Haven.

Mr. Durham has served as the interim U.S. Attorney since October 28, 2017, after U.S. Attorney General Jeff Sessions signed an order appointing him to the position.  President Donald Trump nominated Mr. Durham to serve as U.S. Attorney on November 1, 2017, and the U.S.  Senate confirmed his nomination on February 16, 2018.

“I am very honored to serve as Connecticut’s U.S. Attorney and deeply appreciative of all who have supported my nomination,” said U.S. Attorney Durham.  “I look forward to continuing to work with the dedicated and skilled people in our office and the brave men and women of our partner law enforcement agencies in the cause of justice for the people of our state and nation.”

Prior to his appointment as U.S. Attorney, Mr. Durham served as an Assistant U.S. Attorney in various positions in the District of Connecticut for 35 years, prosecuting complex organized crime, violent crime, public corruption and financial fraud matters.

From 2008 to 2017, Mr. Durham served as Counsel to the U.S. Attorney; from 1994 to 2008, he served as the Deputy U.S. Attorney, and served as the U.S. Attorney in an acting and interim capacity in 1997 and 1998; from 1989 to 1994, he served as Chief of the Office’s Criminal Division, and from 1982 to 1989, he served as an attorney and then supervisor in the New Haven Field Office of the Boston Strike Force in the Justice Department’s Organized Crime and Racketeering Section.

From 2008 to 2012, Mr. Durham also served as the Acting U.S. Attorney for the Eastern District of Virginia, where he investigated matters relating to the destruction of certain videotapes by the CIA and the treatment of detainees by the CIA.  From 1998 to 2008, Mr. Durham served as a Special Attorney for the District of Massachusetts and Head of the Justice Task Force, where he reviewed alleged criminal conduct by FBI personnel and other law enforcement corruption in Boston, led the prosecution of a former FBI Supervisory Special Agent and a former Massachusetts State Police Lieutenant, and handled direct appeals and related proceedings following convictions after trial.

From 1978 to 1982, Mr. Durham served as an Assistant State’s Attorney in the New Haven State’s Attorney’s Office headed by Arnold Markle, and from 1977 to 1978, he served as a Deputy Assistant State’s Attorney in the Office of the Chief State’s Attorney.

From 1975 to 1977, Mr. Durham worked as a Volunteer in Service to America (VISTA) on the Crow Indian Reservation in Montana.

Mr. Durham graduated, with honors, from Colgate University in 1972 and the University of Connecticut School of Law in 1975.

The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation.  As U.S. Attorney, Mr. Durham supervises a staff of approximately 68 Assistant U.S. Attorneys and approximately 57 staff members at offices in New Haven, Hartford and Bridgeport.

Mr. Durham is the 52nd U.S. Attorney for the District of Connecticut, an office that was established in 1789.

 John H. Durham, United States Attorney for the District of Connecticut, announced that DUSAN MLADEN, also known as David Mladen, 63, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for threatening a U.S. Bankruptcy Court judge and lying to federal law enforcement officers investigating the crime.  Judge Meyer also ordered MLADEN to pay a $20,000 fine.

According to court documents and statements made in court, MLADEN was a litigant in a proceeding pending before the U.S. Bankruptcy Court in the District of Connecticut, captioned In re: Eternal Enterprise, Inc.  MLADEN formerly owned Eternal Enterprise, Inc., which owns several residential apartment properties in Hartford, and he had continued to be active in the management and decision making for the company while it was in bankruptcy.

On July 5, 2017, the judge presiding over the Eternal Enterprise matter discovered in the mailbox of her residence an anonymous handwritten note containing the phrases “BACK OFF,” “YOU ARE OVERSTEPPING AUTHORITY” and “JUST WARNING FOR NOW.”

On July 10, the judge received a phone call that had been placed to her home phone number.  During the call, the caller stated that he had visited the judge’s house last week and “I left a message for you.”  He said that he wanted her to file an order tomorrow “extending the deadline to September 30,” and “then maybe everything will be ok.”  Although the caller refused to identify himself, the judge recognized the voice as MLADEN’s.  The U.S. Marshals Service subsequently confirmed that the cell phone used to make the call was at a location in the vicinity of MLADEN’s residence, and that it had been purchased by MLADEN under a fictitious name.

On July 11, deputy U.S. Marshals interviewed MLADEN at his residence.  During the conversation, MLADEN denied having gone to the judge’s house the previous week and having called the judge on July 10, and he stated that he did not have the judge’s phone number.  Each of these statements was false.  Pursuant to a court-authorized search of MLADEN’s car, the U.S. Marshals discovered that the judge’s home address was programmed into the defendant’s GPS unit.

The investigation also revealed that MLADEN had a gun with him when he delivered the threatening note to the judge’s home.

MLADEN has been detained since his arrest on July 11, 2017.  On October 13, he pleaded guilty to one count of making a false statement to a federal law enforcement agent.

This matter was investigated by the U.S. Marshals Service with the assistance of the Connecticut Department of Correction.  The case was prosecuted by Assistant U.S. Attorney William J. Nardini.

John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT DEWAYNE WATKINS, also known as “D,” 42, of Bristol, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 42 months of imprisonment, followed by three years of supervised release, for distributing narcotics that contributed to an overdose death last year.

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 March 18, 2017, Canton Police responded to a suspected overdose incident at a Collinsville restaurant and encountered an unresponsive 29-year-old male.  After unsuccessful resuscitation efforts, the victim was pronounced deceased.  The investigation, which included witness interviews and analysis of the victim’s cellphone, revealed that the victim purchased heroin and crack cocaine from WATKINS shortly before his death.  Some of the heroin contained fentanyl.

WATKINS has been detained since his arrest on July 25, 2017.  On November 8, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and cocaine base (“crack”).

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Canton Police Department.  The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, announced that BRYCE ALEXANDER LAISTER, 25, formerly of Bridgeport, pleaded guilty today in Hartford federal court to one count of armed bank robbery and admitted that he robbed a total of five Connecticut banks between November 2016 and June 2017.

According to court documents and statements made in court, LAISTER robbed the Webster Bank at 314 Merwin Avenue in Milford on November 30, 2016; the Key Bank at 133 East Main Street in Plainville on April 7, 2017; the Key Bank at 1328 Boston Post Road in Westbrook on May 5, 2017; the People’s United Bank located inside the Stop and Shop at 898 Bridgeport Avenue in Shelton on May 30, 2017, and the People’s United Bank located inside the Stop and Shop at 112 Amity Road in New Haven on June 10, 2017.

During the Shelton robbery, LAISTER brandished a pistol, and during the Plainville and Westbrook robberies, LAISTER threatened to kill or shoot bank employees if they did not comply with his demands.

LAISTER was located and arrested in Stratford on June 15, 2017, after he engaged in a two-hour standoff with local and federal law enforcement officers.  At the time of his arrest, LAISTER possessed a .380 caliber pistol and a magazine loaded with two bullets.  A subsequent search one of LAISTER’s vehicles revealed clothing he wore during the robbery on June 10, a makeup kit he used to disguise his features, and a Stop and Shop circular.

LAISTER is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on May 17, 2018, at which time he faces a maximum term of imprisonment of 25 years.  He has been detained since his arrest.

This investigation has been conducted by the Federal Bureau of Investigation, U.S. Marshals Service, Connecticut State Police and the Milford, Plainville, Shelton, New Haven and Stratford Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.

John H. Durham, United States Attorney for the District of Connecticut, announced that RODNEY T. MORGAN, 48, of Norwich, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 51 months of imprisonment, followed by three years of supervised release, for distributing oxycodone, and for violating the conditions of his supervised release from a prior federal conviction.

According to court documents and statements made in court, on November 23, 2010, Judge Chatigny sentenced MORGAN to 49 months of imprisonment, followed by six years of supervised release, for distributing oxycodone, cocaine and crack cocaine.  MORGAN was released from prison in July 2013 and began serving his six-year term of supervised release.

In October 2016, the Norwich Police Department received information that MORGAN was receiving large shipments of prescription pills and kept a supply of the narcotics at a friend’s residence in Stonington.  On October 12, 2016, detectives stopped MORGAN’s car after he drove away from the Stonington residence.  A search of the car revealed more than 100 oxycodone pills.  Detectives subsequently located more than 300 oxycodone pills inside the residence.

MORGAN has been detained since his arrest on October 12, 2016.  On January 5, 2017, he pleaded guilty to one count of possession with intent to distribute oxycodone.  On that date, he also admitted that he violated the terms of his supervised release.

This is MORGAN’s third federal conviction.

This case was prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Anthony P. Kaplan.

John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE MEDINA, also known as “Tito,” 48, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for his role in a heroin trafficking ring.

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

The investigation resulted in federal charges against 24 individuals.

On October 18, 2017, MEDINA pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.

Judge Meyer ordered MEDINA, who is released on bond, to report to prison on March 23, 2018.

Bienvenido Gonzalez and Antonio Gonzalez have pleaded guilty to related charges and await sentencing.

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

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

John H. Durham, United States Attorney for the District of Connecticut, announced that MIGUEL LARA, 47, a citizen of El Salvador last residing in Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment for trafficking cocaine.

According to court documents and statements made in court, in September 2016, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force began an investigation into the cocaine trafficking activities of Christian Paulino Rodriguez.  The investigation revealed that Rodriguez’s cocaine supplier was LARA, the co-owner of Café Luna, a restaurant in Stamford.  In November 2016, an individual working with law enforcement arranged to purchase five kilograms of cocaine from Rodriguez for a price of $28,000 per kilogram.  On November 15, 2016, Task Force officers arrested LARA and Rodriguez after LARA delivered the cocaine to a prearranged location.

LARA has been detained since his arrest.  On November 27, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of cocaine.

Rodriguez, a citizen of the Dominican Republic, pleaded guilty to the same charge on July 18, 2017.  On November 21, he was sentenced to 42 months imprisonment.

LARA and Rodriguez face immigration proceedings when they are released from prison.

This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stamford and Norwalk Police Departments.  The case was prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.

John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that REBECCA BLOCK, 43, of Windsor, waived her right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a federal tax offense stemming from an embezzlement scheme.

According to court documents and statements made in court, BLOCK was employed by PG Life Planning Associates, Inc. in West Hartford.  Between 2010 and 2013, BLOCK stole from the company by issuing checks payable to herself and depositing those checks into her personal bank account.  She concealed the embezzlement from her employer by disguising the payments in PG Life’s internal accounting records as legitimate business expenses.  BLOCK embezzled approximately $190,399 over the approximately four-year period, and failed to report a total of $42,004 in income taxes on her 2010 through 2013 federal tax returns.

BLOCK pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years.  Judge Underhill scheduled sentencing for May 22, 2018.

BLOCK has agreed to make restitution in amount of $190,399 to PG Life, and $42,004, plus applicable interest and penalties, to the IRS.

BLOCK is released on a $40,000 bond pending sentencing.

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that on February 16, 2018, RACHAEL ALEXANDER, also known as Rachael Vierling, 40, of Stratford, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for participating in two fraud schemes.

According to court documents and statements made in court, the first scheme involved the theft of postal money orders.  ALEXANDER and her husband, Marc Anthony Alexander, devised a scheme to steal blocks of blank postal money orders from the U.S. Post Office in Old Greenwich.  The Alexanders and others then imprinted the money orders with various denominations using a computer font designed to make them appear to be authentic.  The Alexanders recruited Bernard Harris, of Bridgeport, into the scheme to organize others to cash the money orders, or deposit them into numerous bank accounts, either at an ATM or at a teller window.  Harris recruited at least five individuals and paid them a portion of the proceeds.  He then turned the bulk of the money over to the Alexanders.  The Alexanders compensated Harris by giving him additional money orders that he cashed and converted to his own use.

The loss from this scheme was $313,570.

The second scheme involved the fraudulent sale of financed vehicles.  In this scheme, the Alexanders took straw buyers to various car dealerships and had them fill out financing paperwork to buy high-end cars.  Typically, the Alexanders would take the car and the straw buyers would sign a power of attorney form to allow them to obtain a new title for it.  The Alexanders would then contact the Connecticut Department of Motor Vehicles and claim that the title had been lost and they needed a replacement title.  At the DMV, they would present a fake letter from the car financing company stating that the loan had been paid off in full.  After they received a new title, the Alexanders would sell the car to another dealer.  The original car loans were not paid and went into default.

The straw buyers financed more than $1 million in fraudulent car loans during the course of this scheme.

The investigation revealed that the Alexanders used the money they stole to acquire a large number of luxury goods.

Judge Arterton ordered Rachael Alexander to pay restitution in the total amount of $443,807.97.

Marc Alexander, Rachael Alexander and Bernard Harris were arrested on April 26, 2016.  

On January 17, 2017, Marc Alexander and Rachael Alexander each pleaded guilty to one count of conspiracy to commit wire fraud stemming from the postal money order scheme, and one count of conspiracy to commit mail and wire fraud stemming from the vehicle scheme.

On April 11, 2017, Marc Alexander was sentenced to 96 months of imprisonment.

Harris pleaded guilty to one to one count of conspiracy to commit wire fraud stemming from the postal money order scheme, and one count of wire fraud stemming from a separate fraudulent check scheme.  On January 16, 2018,  he was sentenced to 30 months of imprisonment.

Rachael Alexander, who is released on bond, was ordered to report to prison on April 18.

This investigation was conducted by the Connecticut Financial Crimes Task Force¸ U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Federal Bureau of Investigation, Westport Police Department and Greenwich Police Department.  The case was prosecuted by Assistant U.S. Attorney Ray Miller.