District of Connecticut

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 Enfield Police Chief Carl Sferrazza today announced that DARRIN LAMORE, 47, of Enfield, has been charged by a federal criminal complaint with stealing government funds from the Enfield Community Development Corporation.

On February 16, 2018, LAMORE appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on a $25,000 bond.

As alleged in court documents, LAMORE was the executive director of the Enfield Community Development Corporation (“ECDC”), a non-profit corporation that oversees economic development projects in Enfield, primarily in the Thompsonville section of the town.  The ECDC is supported with federal funds administered by the State of Connecticut.  From June 2012 to October 2015, LAMORE conspired with an employee of the Town of Enfield to falsify invoices and divert funds intended for economic development in Enfield and apply them to LAMORE’s salary.  Through this scheme, LAMORE stole more than $95,000 from the ECDC.

The complaint charges LAMORE with theft from a program receiving 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 ongoing investigation is being conducted by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation, and the Enfield Police Department.  The Task Force also includes members from the Internal Revenue Service, Criminal Investigation Division, 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 U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney Liam Brennan.

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 LUIS PALACIOS ORTIZ, 44, a citizen of Mexico, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to cocaine trafficking and immigration offenses.

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

PALACIOS ORTIZ, who did not possess a valid driver’s license, had been previously deported from the U.S.

PALACIOS ORTIZ pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, an offense that carries a maximum term of imprisonment of 40 years, and one count of reentry of a removed alien, an offense that carries a maximum term of imprisonment of 10 years.

Under the terms of a binding plea agreement, if accepted by the court, the parties have agreed that a term of imprisonment of 60 months is an appropriate sentence in this case.

Judge Shea scheduled sentencing for May 14, 2018.

PALACIOS ORTIZ has been detained since February 13, 2017.

This investigation is being conducted by the Drug Enforcement Administration and the Connecticut State Police.  The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.

John H. Durham, United States Attorney for the District of Connecticut, announced that VICTOR MANUEL AGUILAR CAMACHO, 39, a citizen of Mexico, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately five months of imprisonment, time already served, for illegally reentering the United States after being deported.

According to court documents and statements made in court, in September 2013, the Willimantic Police Department arrested AGUILAR CAMACHO after a domestic violence incident.  The victim reported to police that AGUILAR CAMACHO, against whom the victim had obtained a protective order, had hid outside of her home, forced his way inside and assaulted her.

On March 11, 2014, AGUILAR CAMACHO pleaded guilty to violation of a protective order and strangulation in the second degree, and was sentenced to five years of incarceration, execution suspended, and three years of probation.  He was removed to Mexico in September 2014.

AGUILAR CAMACHO illegally reentered the U.S. and returned to Connecticut.  In September 2017, he was spotted outside the home of the victim.

AGUILAR CAMACHO has been detained in federal custody since October 5, 2017.  On November 20, he pleaded guilty to one count of reentry of a removed alien.

At the conclusion of today’s court proceeding, AGUILAR CAMACHO was taken into ICE custody and will be removed to Mexico.

This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations.  The case was prosecuted by Assistant U.S. Attorney Alina Reynolds.

John H. Durham, United States Attorney for the District of Connecticut, today announced that TYEVHON KING, also known as “Twin,” 30, 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, KING 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 KING, revealed that KING regularly received a total of more than three kilograms of heroin, which he distributed to his own customers.

During the investigation, investigators seized vehicles owned by KING that contained “traps,” typically used to conceal narcotics and other contraband.

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

KING has been detained since his arrest on March 24, 2017.  He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 10, at which time he faces a mandatory minimum term of imprisonment of 10 years 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, announced that RYAN S. ROZYCKI, 41, of Norwalk, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by two years of supervised release, for tax evasion.  Judge Shea also ordered ROZYCKI to pay a $50,000 fine.

According to court documents and statements made in court, ROZYCKI owns and operates bangthebook.com, a sports gaming information website, as well as other website businesses and rental properties.  For the 2009 through 2014 tax years, ROZYCKI reported more than $1.6 million in gross receipts on his federal income tax returns, but failed to report more than $1.1 million in taxable income, which he had deposited into his personal bank accounts.  ROZYCKI had worked with an accountant to prepare his tax returns, but did not provide his accountant with any information regarding his personal accounts and the business receipts that had been deposited into them.

As a result, ROZYCKI failed to pay more than $300,000 in federal income taxes.

ROZYCKI has paid full restitution of $336,780 to the IRS.  He also will be required to pay interest and penalties.

On September 20, 2017, ROZYCKI pleaded guilty to one count of tax evasion.

Judge Shea ordered ROZYCKI, who is released on a $100,000 bond, to report to prison on April 30, 2018.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Michael S. McGarry.

John H. Durham, United States Attorney for the District of Connecticut, announced that KHADAFI CASTRO, 40, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine.

According to court documents and statements made in court, between March and August 2017, investigators made eight controlled purchases of heroin, fentanyl and/or crack cocaine from CASTRO on Hungerford Street in Hartford.  During the last three drug sales, all of which occurred in August 2017, CASTRO was assisted by his associate, Todd Peters.

CASTRO has been detained since his arrest on August 14, 2017.  On November 20, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack”).

CASTRO has a criminal history that spans more than 20 years and includes 11 felony convictions, including convictions for sexual assault, criminal weapon possession, and drug trafficking.  He was on state probation while engaged in the drug trafficking activity that led to this federal conviction.

Peters, of Hartford, pleaded guilty on November 16, 2017.  He awaits sentencing.

This matter was investigated by the Hartford Police Department’s Vice and Narcotics Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force.  The case is being prosecuted by Assistant U.S. Attorney Marc H. Silverman.

John H. Durham, United States Attorney for the District of Connecticut, announced that EDWIN ESCRIBANO, also known as “Bebo,” 26, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl to an overdose victim in 2016.

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

According to court documents and statements made in court, on September 14, 2016, Rocky Hill Police and emergency medical personnel responded to a restaurant on a report of a male who had overdosed and was not breathing.  The male, who was 29 years old, was pronounced deceased at the scene.  Officers seized drug and non-drug evidence, including a cellophane tourniquet and syringe in the restaurant bathroom that ultimately tested positive for the presence of heroin and fentanyl.  The investigation, which included analysis of the victim’s and ESCRIBANO’s cellphones, revealed that ESCRIBANO had provided the drugs to the victim shortly before the victim’s death.

Analysis of ESCRIBANO’s cellphone revealed thousands of text messages pertaining to his heroin trafficking activity between June 2016 and May 2017.

ESCRIBANO was arrested on federal criminal complaint on May 30, 2017.  On November 14, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of fentanyl and heroin.

ESCRIBANO, who is released on bond, was ordered to report to prison on March 13.

This matter was investigated by the Drug Enforcement Administration and the Rocky Hill Police Department.  This case was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Lauren Clark.

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 New Haven Police Chief Anthony Campbell today announced that a grand jury in New Haven returned a 30-count indictment yesterday charging 19 individuals with federal narcotics offenses related to the distribution of crack cocaine and oxycodone in and around New Haven.

According to allegations made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler.  The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that Butler and others were distributing crack cocaine and oxycodone in the New Haven area.

Charged in the indictment are:

JERMAYNE BUTLER, a.k.a. “Main,” “Main Live” and “Liver,” 36, of New Haven
TYRESE HARGROVE, a.k.a. “T.Y.,” 36, of New Haven
DEQUEISHA SLEDGE, a.k.a. “Queish” and “Shontay,” 35, of New Haven
TORRENCE GAMBLE, a.k.a. “Bones” and “Bone,” 44, of New Haven
RONNIE GORDON, a.k.a. “Pop,” 36, of New Haven
ANTHONY MCBRIDE, a.k.a. “Moto,” 49, of New Haven
JOEY FULLER, 28, of New Haven
MALCOLM NEWTON, a.k.a. “Biggie,” 23, of New Haven
MARQUIS PARKER, 25, of New Haven
MARVIN SPRUILL, a.k.a. “Marv,” 25, of West Haven
MILTON VEREEN, a.k.a. “M.D.,” 38, of New Haven
RASHAAN WOOLFOLK, a.k.a. “Booka,” 26, of West Haven
HUSAIN REDMOND, a.k.a. “Pullie,” 37, of West Haven
ROBERT THOMPSON, a.k.a. “Bobby D” and “Bobby Diesel,” 49, of New Haven
CHAUNCEY EVANS, a.k.a. “Chaos,” 45, of New Haven
CARNELL EDWARDS, 47, of Bridgeport
OSVALDO SAEZ, 30, of New Haven
ZARKEE SANDERS, 40, of Hamden

On February 6, 2018, investigators arrested all of the defendants with the exception of Tyrese Hargrove, Anthony McBride and Chauncy Evans, who were already incarcerated in state custody.  One defendant is still being sought.

In association with the arrests, investigators conducted court-authorized searches of seven properties in New Haven and Hamden and seized seven firearms, ammunition, approximately 100 grams of crack cocaine, and approximately $14,000 in cash.

The indictment charges Butler, Gamble and Sanders with conspiracy to distribute, and to possess with intent to distribute, 280 grams or more of cocaine base (“crack”).  If convicted of this charge, the defendants face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

Hargrove, Sledge, Gordon, McBride, Fuller, Newton, Parker, Spruill, Redmond, Evans, Edwards and Saez are charged with conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base.  If convicted of this charge, the defendants face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  Woolfook is charged with conspiracy to distribute, and to possess with intent to distribute, a quantity of cocaine base, an offense that carries a maximum term of imprisonment of 20 years.

Butler, Hargrove, Sledge, Spruill, Vereen and Thompson are charged with conspiracy to distribute, and to possess with intent to distribute, oxycodone, an offense that carries a maximum term of imprisonment of 20 years.

In addition, the indictment charges each of the defendants with one of more counts of possession and/or distribution of crack cocaine and/or oxycodone.

U.S. Attorney Durham noted that the investigation is ongoing, and some of the defendants may face additional charges related to the firearms that were seized at the time of their arrests.

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

This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.

John H. Durham, United States Attorney for the District of Connecticut announced that CHRISTOPHER HAMLETT, also known as “Cadi” and “Cadillac Black,” 24, of Hartford, was arrested today on a criminal complaint charging him with sex trafficking of a minor.

HAMLETT appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford.  He is detained pending a detention hearing that is scheduled for February 15.

As alleged in court documents, between August and November 2017, HAMLETT coerced a minor victim to engage in prostitution at Hartford area hotels.  In an interview with law enforcement, the victim stated that, in the beginning, HAMLETT gave the victim a percentage of the money she earned through prostitution.  After that, she stated, “he took all of my money” and, if she complained, he said “It’s business.  I have things that cost money.  Just do as you’re told or I can make you disappear.  No one is going to look for you.”

It is further alleged that HAMLETT advertised the victim’s prostitution services on online websites, including Backpage.com.

If convicted of the charge of sex trafficking of a minor, HAMLETT faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment.

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

This matter is being investigated by the Hartford Police Department, through the Connecticut Human Trafficking Task Force, and the Federal Bureau of Investigation.  The case is being prosecuted by AUSAs Sarala V. Nagala and Nancy V. Gifford.

John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN G. KOUKOURAS, 40, of Eugene, Oregon, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for trafficking marijuana.  Judge Arterton also ordered KOUKOURAS to pay a $4,000 fine.

According to court documents and statements made in court, in the summer of 2017, KOUKOURAS and William Reyes, of Stamford, utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana.  On July 26, 2017, investigators executed a federal search warrant at the Lagrangeville residence and seized approximately 140 marijuana plants and equipment used to grow, process and distribute marijuana.

On September 14, 2017, KOUKOURAS was arrested at 720 Brookside Drive in Eugene.  On that date, investigators searched the residence and seized approximately 50 marijuana plants and equipment used to grow and process marijuana.

The investigation also revealed that Reyes was being supplied with large quantities of marijuana by Gustavo Garcia, of Queens, New York.  In July 2017, Garcia delivered approximately 40 pounds of marijuana to Reyes in exchange for approximately $80,000.

On November 15, 2017, KOUKOURAS pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana.

Judge Arterton ordered KOUKOURAS to report to prison on March 13, 2018.  He is released on a $25,000 bond.

Reyes and Garcia have pleaded guilty to related charges and await sentencing.

This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police.  The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.

John H. Durham, United States Attorney for the District of Connecticut, announced that RAMAEL ARTIS, also known as “Rah,” 36, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 106 months imprisonment, followed by five years of supervised release, for gun and drug offenses.

According to court documents and statements made in court, on March 15, 2016, a court-authorized search of ARTIS’ Norwich apartment revealed approximately 50 grams of heroin, a quantity of cocaine, and items used to process and package narcotics for street sale.

The investigation revealed that between July 2015 and March 2016, ARTIS obtained four handguns by trading heroin for each firearm.

ARTIS has been detained since his arrest on March 15, 2016.  On October 4, 2017, he pleaded guilty to one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.

ARTIS’s criminal history includes felony convictions for firearm, narcotics, robbery and larceny offenses.

This investigation was conducted by the FBI’s Northern Connecticut Safe Streets Task Force, and the Town of Groton, Norwich and Waterford Police Departments.  The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.

John H. Durham, United States Attorney for the District of Connecticut, today announced that two New York men have been sentenced in New Haven federal court for their roles in a credit card fraud scheme.

On February 5, Chief U.S. District Judge Janet C. Hall sentenced YANG-SHI LIN, 31, of Flushing, to 12 months and one day of imprisonment, followed by two years of supervised release.  Today, Chief Judge Hall sentenced MEI BAO LU, 31, of Flushing, to 18 months of imprisonment, followed by three years of supervised release.

According to court documents and statements made in court, between 2014 and September 2015, LU was the ringleader of a group of individuals from New York that engaged in counterfeit credit card transactions at retail stores along the East Coast.  LIN was LU’s second-in-command.  As part of the scheme, LU provided several individuals (“buyers”) with counterfeit credit cards, which had been produced from credit card information skimmed from cardholders, and directed the buyers to purchase gift cards and luxury merchandise using the counterfeit cards.  LU then sold the items to other individuals at a discount in order to be fenced or sold on the black market.  The group engaged in fraudulent credit card transactions at retail stores in Connecticut, Florida, Maine, Massachusetts, New York, New Jersey, Pennsylvania and West Virginia. 

In total, the group members collectively used 120 counterfeit credit cards, issued by 18 victim financial institutions, to make a total of approximately $179,000 in fraudulent purchases.  Investigators discovered an additional 333 stolen card numbers on thumb drives belonging to LU and LIN that had not been used at the time of their arrests.

The investigation began in February 2015 when the Clinton Police Department and other police departments in nearby Connecticut towns received several complaints from citizens about unauthorized charges on their credit and debit cards.  The investigation revealed that many of the complaining citizens had all dined at the same Clinton restaurant during a two-week period in early February 2015.

A federal arrest warrant for LU was issued on August 18, 2015.  LU was arrested on September 3, 2016, in West Virginia, after he and three other individuals were caught buying gift cards and merchandise with counterfeit credit cards at a mall in Barboursville, West Virginia.  On February 17, 2017, LU pleaded guilty to one count of access device fraud and aiding and abetting. 

LIN was arrested on August 20, 2015, and pleaded guilty to the same charge on June 22, 2017.

LU and LIN, who are released on bond, were ordered to report to prison on March 7, 2018.

Several other members of LU’s group were charged and convicted for credit card related offenses in state and federal courts in Maine, New Jersey, New York, and West Virginia.

This matter was investigated by Homeland Security Investigations and the Clinton Police Department.  The U.S. Secret Service, Millburn (N.J.) Police Department, New York Police Department, New York State Police, Acton (Mass.) Police Department, and Barboursville (W. Va.) Police Department assisted with the investigation.  The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an Indictment charging BYRON ELLIOTT VAUGHN, 31, of Waterbury, with violating the Sex Offender Registration and Notification Act (SORNA).

The indictment was returned on November 30, 2017.  VAUGHN appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charge.

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

It is alleged that VAUGHN failed to update his sexual offender registration in Virginia, failed to advise Virginia of his change of residence to Connecticut, and failed to register in Connecticut as a sex offender when he moved to Connecticut and applied for employment in Waterbury in November 2016.

On August 9, 2017, the U.S. Marshals Service located and arrested VAUGHN in Waterbury on a violation of probation warrant that was issued in Virginia in December 2015.  He has been detained since his arrest.

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

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

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that YOLANDA SILVERIO, 54, of Austin, Texas, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 10 months of imprisonment, followed by three years of supervised release, for theft in connection with health care.  Judge Bryant also ordered SILVERIO to perform 150 hours of community service.

According to court documents and statements made in court, SILVERIO, who formerly resided in Meriden, was employed as an Eligibility Coordinator for a Connecticut company that administers trust funds for public and private sector health benefit plans.  As Eligibility Coordinator, SILVERIO received checks from individual participants in a particular health plan as payment for their union-related health benefits.  Between May 2013 and July 2014, SILVERIO deposited 49 benefit checks totaling $35,461.34 into her own bank accounts.

In 2004, SILVERIO was convicted in federal court for embezzling more than $105,000 from two Connecticut businesses by forging signatures on business checks and was sentenced to 10 months of imprisonment, with five months to serve in home detention with electronic monitoring.  SILVERIO’s supervised release was subsequently revoked and she was sentenced to an additional six months of imprisonment for failure to make a required lump sum restitution payment and for material misrepresentations to her probation officer.

Judge Bryant ordered SILVERIO to pay restitution in the amount of $35,461.34, and to notify any future employers in writing of her two prior fraud convictions.

SILVERIO pleaded guilty on February 24, 2017.

SILVERIO, who is released on a $15,000 bond, was ordered to report to prison on March 26, 2018.

This matter was investigated by the U.S. Department of Labor – Office of the Inspector General, and the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office.  The case was prosecuted by Assistant U.S. Attorney Susan L. Wines.

 John H, Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy stemming from her role in a securities fraud scheme.

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

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

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

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

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

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

Judge Meyer scheduled sentencing for May 2, 2018, at which time DALMY faces a maximum term of imprisonment of five years.  DALMY is released on a $100,000 bond pending sentenced.

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

On January 20, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment.  Meissenn, Lieberman, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., await sentencing.  

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

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that on February 1, 2018, a federal grand jury in Hartford returned an indictment charging ENRIQUE FAJARDO MARIN, 39, a citizen of Ecuador recently residing in Danbury, with one count of illegally reentering the U.S., and one count of violating the Sex Offender Registration and Notification Act (SORNA).

FAJARDO appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charge.

According to court documents and statements made in court, in December 2011, FAJARDO was convicted in Danbury Superior Court of illegal sexual contact with a minor and risk of injury.  He was sentenced to 18 years of incarceration, execution suspended after 10 years, with 20 years of probation.  FAJARDO also was required to register as a sex offender for a period of 10 years.

On February 6, 2016, FAJARDO was deported from the U.S. to Ecuador.

On June 28, 2017, FAJARDO was arrested in Worcester, Massachusetts.  It is alleged that he had illegally reentered the U.S. and had been residing in the Danbury area as early as May 1, 2017.  It is further alleged that FAJARDO had failed to register as a sex offender in Connecticut.

FAJARDO has been detained since his arrest.

If convicted, FAJARDO faces a maximum term of imprisonment of 20 years for illegally reentering the U.S., and a maximum term of imprisonment of 10 years for failing to register as a sex offender.

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

This matter is being investigated the U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the U.S. Marshals Service, with the assistance of Connecticut State Parole.  The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

John H. Durham, United States Attorney for the District of Connecticut, today announced that ALEX ALBERTO FAJIN-DIAZ, 31, a citizen of Spain, and ARGENYS RODRIGUEZ, 21, of Springfield, Massachusetts, have been charged by federal criminal complaint with bank fraud stemming from an alleged ATM “jackpotting” scheme.

FAJIN-DIAZ and RODRIGUEZ were arrested on related state charges on January 27.  They appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and are detained.

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

As alleged in the criminal complaint, federal, state and local law enforcement agencies have been investigating recent jackpotting attacks on ATMs in Hamden and Guilford, as well as Providence, Rhode Island.  On January 27, 2018, Citizens Bank investigators contacted police after they observed what appeared to be an attack on an ATM in Cromwell.  On that date, Cromwell Police encountered FAJIN-DIAZ and RODRIGUEZ near an ATM that had been compromised with jackpotting malware and was in the process of dispensing $20 bills.  A search of FAJIN-DIAZ and RODRIGUEZ’s vehicle, which had a license plate that was assigned to another vehicle, revealed tools and electronic devices consistent with items needed to compromise an ATM machine to dispense its cash contents.  FAJI-DIAZ and RODRIGUEZ also possessed more than $9,000 in $20 bills.

The charge of bank fraud carries a maximum term of imprisonment of 30 years.

U.S. Attorney Durham stressed that a complaint is only a charge and 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 ongoing investigation is being conducted by the Connecticut Computer Crimes Task Force, U.S. Secret Service, Connecticut State Police, Chief State’s Attorney’s Office, Middlesex State’s Attorney’s Office. Cromwell Police Department, Middletown Police Department, Greenwich Police Department.  The case is being prosecuted by Assistant U.S. Attorney Ray Miller.

John H. Durham, United States Attorney for the District of Connecticut, announced that WAYNE BRADBURY, 33, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 18 months of imprisonment, followed by six years of supervised release, for drug distribution and money laundering offenses.

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 40-milligram oxycodone pills from Tahir Farid 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, BRADBURY supplied oxycodone pills and marijuana to 19-year-old Ryan Looney who sold the oxycodone pills to Farid, who then distributed a portion of them to the 22-year-old victim.  According to investigators, BRADBURY had been supplying Looney with drugs on credit and had Looney repay him by depositing cash into BRADBURY’s back account.  BRADBURY then withdrew the cash at ATMs to pay his drug supplier.

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.

Judge Chatigny ordered BRADBURY to begin serving this federal sentence after he completes a state sentence for unrelated firearm offenses.

Farid and Looney, both of Hamden, each previously pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.  On November 30, 2016, Farid was sentenced to six months of imprisonment.  Looney awaits sentencing. 

This matter has been 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 is being prosecuted by Assistant U.S. Attorney Lauren Clark.

John H. Durham, United States Attorney for the District of Connecticut, today announced that on February 2, ONEL ARANA-GERVACIO, also known as “Arana Ricardo Leon Cepeda,” 44, a citizen of Mexico last residing in Houston, Texas, pleaded guilty before U.S. District Judge Michael P. Shea in Hartford to heroin trafficking and immigration offenses.

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 ARANA, 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.  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.

The investigation revealed that in October 2013, a U.S. Border Patrol agent encountered ARANA near Hidalgo, Texas, and determined that ARANA had unlawfully entered the U.S. from Mexico.  He was removed to Mexico on November 2, 2013.

ARANA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.  He also pleaded guilty to one count of illegal reentry, an offense that carries a maximum term of imprisonment of two years.  Judge Shea scheduled sentencing for May 1, 2018.

ARANA has been detained since his arrest on January 20, 2017.

This matter is being 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, announced that ROBERT EPPS, 25, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of a firearm by a previously convicted felon.

According to court documents and statements made in court, on August 28, 2017, EPPS participated in the sale of a stolen Smith and Wesson .223 caliber semi-automatic rifle and two rifle magazines containing a total of 39 rounds of .223 caliber ammunition.  On that date, EPPS transported the rifle and ammunition to a parking lot in New Haven.  He then removed the firearm and ammunition from the trunk of his vehicle and handed the items to another person who, in turn, handed them to the purchaser.

EPPS’ criminal history includes state felony convictions for narcotics distribution and identity theft.

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

Judge Arterton scheduled sentencing for April 27, 2018, at which time EPPS faces a maximum term of imprisonment of 10 years.  EPPS is released on bond pending sentencing.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  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 a federal grand jury in Hartford returned an indictment yesterday charging RICHARD M. LACH, 31, of Richton Park, Illinois, with six counts of wire fraud and one count of aggravated identity theft stemming from a scheme to defraud state unemployment insurance programs in Connecticut and several other states.

LACH was arrested this morning in Matteson, Illinois.  He appeared today in U.S. District Court for the Northern District of Illinois, in Chicago, and was order detained pending his removal to the District of Connecticut.

According to the indictment, LACH fraudulently filed claims with the Connecticut Department of Labor for unemployment benefits in the names of identity theft victims, using their names, dates of birth and social security numbers.  LACH directed that the unemployment benefits be directly deposited to Green Dot debit cards he was using.  The Green Dot cards had been fraudulently opened in the names of other victims.  In some cases, based on the fraudulent claims, unemployment benefits were deposited to the Green Dot cards.  LACH then withdrew the funds or otherwise spent the funds for his own personal use and benefit.

The indictment further alleges that in addition to fraudulently obtaining unemployment benefits from the Connecticut Department of Labor, LACH also fraudulently obtained or attempted to obtain unemployment benefits from agencies in other states, including Idaho, Iowa, Maine, New Jersey, New York, Pennsylvania and Texas. 

Each count of wire fraud carries a maximum term of imprisonment of 20 years and aggravated identity theft carries a mandatory consecutive two-year term of imprisonment

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 Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, New York State Department of Labor, and Matteson (Illinois) Police Department.  The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

New Haven, Conn. – A Russian national has been extradited from Spain and will be arraigned later today in Connecticut on charges stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software, the Department of Justice announced today.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.

Peter Yuryevich Levashov, 37, also known as Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, has been detained since April 7, 2017, in Spain when he was arrested by Spanish authorities based upon a criminal complaint and arrest warrant issued in the District of Connecticut.

Levashov is scheduled to be arraigned today at approximately 6:00 p.m. before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport.

“Levashov is alleged to have controlled and operated the Kelihos botnet which was used to distribute hundreds of millions of fraudulent e-mails per year, intercept credentials to online and financial accounts belonging to thousands of Americans, and spread ransomware throughout our networks,” said Acting Assistant Attorney General Cronan.  “Today’s action, as well as the disruption of the Kelihos botnet in April 2017, demonstrates the Department’s steadfast commitment to working with our international law enforcement partners to identify cybercriminals and hold them accountable for their conduct.”

“It is alleged that, for years, Mr. Levashov profited handsomely by controlling a botnet that infected computers and affected computer users all over the world,” said U.S. Attorney Durham.  “Thanks to the excellent work of the FBI, with the assistance of our law enforcement partners in Spain, he was identified and apprehended, and will now face justice.”

“As a result of a sophisticated and complex computer intrusion investigation, the FBI, working with national and international law enforcement partners, have now brought to justice an individual who, we allege, has been responsible for the theft of personal information and distribution of SPAM and malware through his operation of the Kelihos botnet,” said FBI Special Agent in Charge Ferrick.

As alleged in an eight count-indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.

The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).

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

On April 20, 2017, a grand jury in Bridgeport returned an indictment charging Levashov with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft.

An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.

The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance of the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance of Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section, are prosecuting the case.  The Criminal Division’s Office of International Affairs handled the extradition in this matter, and the U.S. Marshals Service coordinated he defendant’s safe transport from Spain to the U.S.

A Russian national has been extradited from Spain and will be arraigned later today in Connecticut on charges stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software, the Department of Justice announced today.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.

Peter Yuryevich Levashov, 37, also known as Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, has been detained since April 7, 2017, in Spain when he was arrested by Spanish authorities based upon a criminal complaint and arrest warrant issued in the District of Connecticut.

Levashov is scheduled to be arraigned today at approximately 6:00 p.m. before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, Connecticut.

“Levashov is alleged to have controlled and operated the Kelihos botnet which was used to distribute hundreds of millions of fraudulent e-mails per year, intercept credentials to online and financial accounts belonging to thousands of Americans, and spread ransomware throughout our networks,” said Acting Assistant Attorney General Cronan.  “Today’s action, as well as the disruption of the Kelihos botnet in April 2017, demonstrates the Department’s steadfast commitment to working with our international law enforcement partners to identify cybercriminals and hold them accountable for their conduct.” 

“It is alleged that, for years, Mr. Levashov profited handsomely by controlling a botnet that infected computers and affected computer users all over the world,” said U.S. Attorney Durham.  “Thanks to the excellent work of the FBI, with the assistance of our law enforcement partners in Spain, he was identified and apprehended, and will now face justice.”

“As a result of a sophisticated and complex computer intrusion investigation, the FBI, working with national and international law enforcement partners, have now brought to justice an individual who, we allege, has been responsible for the theft of personal information and distribution of SPAM and malware through his operation of the Kelihos botnet,” said FBI Special Agent in Charge Ferrick.

As alleged in an eight count-indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.

The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).

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

On April 20, 2017, a grand jury in Bridgeport returned an indictment charging Levashov with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft.

An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.

The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police and the U.S. Marshals Service.  Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance from Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter. The U.S. Marshals Service assisted today’s extradition.

John H. Durham, United States Attorney for the District of Connecticut, today announced that NELSON MARQUEZ, 31, of West Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.

According to court documents and statements made in court, in 2014, the Drug Enforcement Administration’s Hartford Task Force received information that David Alvarado, also known as “Flaco,” was distributing heroin to street-level dealers and drug customers in the vicinity of his residence on Wethersfield Avenue in Hartford.  Between August 2014 and May 2015, investigators made eight controlled purchases of heroin from Alvarado.  A wiretap investigation revealed that Alvarado supplied MARQUEZ both with raw heroin and heroin packaged for distribution, which MARQUEZ distributed to his own customers.

On May 26, 2015, investigators conducted a court-authorized search of Alvarado’s residence and seized raw heroin, bagged heroin, heroin stamps, digital scales, thousands of wax folds, and other items used to process and package heroin.  Investigators also seized a 9mm Beretta pistol with a loaded magazine, and numerous rounds of ammunition.

MARQUEZ’s criminal history includes a federal conviction for conspiring to distribute crack cocaine.  On May 7, 2010, MARQUEZ was sentenced in New Haven federal court to 42 months of imprisonment and 5 years of supervised release for that offense.  He was released from federal prison in June 2012 and was on federal supervised release while he engaged in the heroin trafficking activity described above.

MARQUEZ has been detained since his arrest on November 1, 2016.  On May 15, 2017, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.

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

The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. 

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned an indictment charging HIRAN SANCHEZ, also known as “Ivan” and “Pablo,” 20, of Hartford, with one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor.

The indictment was returned on November 15, 2017, and SANCHEZ was arrested on January 22, 2018.  He entered a plea of not guilty to the charges and is detained pending trial.

As alleged in the indictment, SANCHEZ recruited, harbored and transported two minor victims to engage in commercial acts.  SANCHEZ trafficked the first victim in July 2016 and the second victim in April and May 2017.

The charge of sex trafficking of a minor carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

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 Connecticut State Police and Hartford Police Department, through the Connecticut Human Trafficking Task Force, and with the assistance of Homeland Security Investigations.  The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Nancy V. Gifford.

John H. Durham, United States Attorney for the District of Connecticut, today announced that JOEL GONZALEZ, also known as “Tuti,” 34, of East Hartford, was sentenced yesterday by Senior U.S. District Judge Alfred V. Covello in Hartford to 77 months of imprisonment, followed by four years of supervised release, for distributing heroin.

According to court documents and statements made in court, in November and December 2015, the FBI’s Northern Connecticut Violent Crime Gang Task Force and Hartford Police made a total of six controlled purchases of heroin from GONZALEZ at 71 Warrenton Avenue and 30-32 Putnam Street in Hartford.

GONZALEZ was arrested on December 16, 2015.  On that date, a search of his East Hartford residence revealed 30 bags of heroin and $23,302 in cash; a search of 71 Warrenton Avenue revealed 2,000 bags of heroin and $5,298 in cash, and a search of 30-32 Putnam Street revealed 330 bags of heroin, approximately 30 grams of crack cocaine, approximately 12 grams of cocaine and $2,762 in cash.

GONZALEZ has been detained since his arrest.  On May 10, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN FLUMAN, 34, of Southbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 57 months of imprisonment, followed by three years of supervised release, for possessing and detonating a pipe bomb.

According to court documents and statements made in court, on April 15, 2017, FLUMAN detonated a pipe bomb, which he had built, in the vicinity of Upper Grassy Hill Road in Woodbury.

On June 8, investigators conducted a court-authorized search of FLUMAN’s Southbury residence and seized three pipes with end caps, Pyrodex, a fuse, an electric blasting cap, and a semi-automatic rifle.

FLUMAN’s criminal history includes state felony convictions for larceny, burglary and narcotics possession.

FLUMAN has been detained since his arrest on July 26, 2017.  On November 15, he pleaded guilty to one count of possession of a destructive device by a convicted felon.

This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police and Woodbury Resident Trooper’s Office.  The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.

John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT CHADRONET, 41, formerly of East Providence, R.I., was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 90 months of imprisonment, followed by three years of supervised release, for committing three bank robberies in 2015, and for violating the conditions of his supervised release following a previous federal conviction.

According to court documents and statements made in court, CHADRONET used force, violence and intimidation to rob approximately $1,000 from a branch of TD Bank located at 1003 West Main Street in Branford, Conn., on July 27, 2015; approximately $2,329 from a branch of Citizens Bank located at 1187 Boston Post Road in Westbrook, Conn., on August 27, 2015, and approximately $697 from a branch of Citizen’s Bank located at 2991 Cranberry Highway in Wareham, Mass., on September 9, 2015.

At the time of this criminal conduct, CHADRONET was on federal supervised release for a prior bank robbery conviction in the District of Rhode Island.

On October 4, 2016, CHADRONET pleaded guilty in federal court to one count of bank robbery.

CHADRONET has been detained since September 10, 2015, when he was arrested on state charges related to a bank robbery that occurred in Milford, Connecticut, on August 18, 2015.  CHADRONET pleaded guilty in state court for the Milford robbery and was sentenced to 10 years of incarceration.

Judge Bryant ordered CHADRONET to pay $4,026 in restitution.

This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department, Milford Police Department and Wareham (Mass.) Police Department.  The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

John H. Durham, United States Attorney for the District of Connecticut, today announced that RUBEN GONZALEZ, 39, of New Haven, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 77 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 GONZALEZ’s brothers, Bienvenido and Antonio Gonzalez.  The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that 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 in New Haven and elsewhere.

The investigation resulted in federal charges against 24 individuals.

During the investigation, RUBEN GONZALEZ, who was incarcerated in state custody, instructed his girlfriend, Marimar Roman, to purchase large quantities of heroin from Bienvenido Gonzalez and then distribute the drug RUBEN GONZALEZ’s customers.

On November 6, 2017, RUBEN GONZALEZ pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.

Judge Meyer ordered GONZALEZ to begin serving his 77-month federal sentence after he completes his state sentence, which is scheduled to conclude in approximately six months.

Bienvenido Gonzalez, Antonio Gonzalez and Marimar Roman previously 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 ELVIN PLAZA, also known as “Jordan,” 40, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 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 PLAZA, in New Haven and elsewhere.  PLAZA regularly purchased between 200 and 300 grams of heroin from Bienvenido Gonzalez and then sold the drug to his own customers.

The investigation resulted in federal charges against 24 individuals.

PLAZA was arrested on March 16, 2017.  On November 1, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.

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

PLAZA has 10 prior convictions, including three drug-related convictions, and a sexual offense that involved a minor victim.

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 SHAQUILLE RICHARDSON, 23, of New Haven, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to federal robbery and firearm charges.

According to court documents and statements made in court, on June 30, 2016, at approximately 1:41 a.m., New Haven Police officers were dispatched to Ferry Street after a report of person who had been shot.  At the scene, officers found two victims.  One victim had been shot in the left elbow and was bleeding heavily, and the other victim was bleeding from the nose. 

The investigation, which has included witness interviews, DNA evidence, ballistics evidence and footage from a surveillance video, revealed that RICHARDSON and another individual attacked the two victims after they exited a convenience store in an attempt to steal marijuana from the victims.  RICHARDSON struck one of the victims in the face with a gun.

Officers apprehended RICHARSON near the scene of the robbery.  When RICHARDSON was found, he was bleeding from a gash to his hand where one of the victims had slashed him with a knife in self-defense. 

RICHARDSON pleaded guilty to one count of Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of carrying a firearm in furtherance of a crime of violence, which carries a mandatory consecutive term of imprisonment of five years.  Judge Shea scheduled sentencing for April 25, 2018.

RICHARDSON has been detained since his arrest on June 30, 2016.

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

 John H. Durham, United States Attorney for the District of Connecticut, today announced that LUIS ORTIZ, also known as “Cuko,” 30, of Hartford, was sentenced yesterday by Senior U.S. District Judge Alfred V. Covello in Hartford to 46 months of imprisonment, followed by three years of supervised release, for distributing heroin.

According to court documents and statements made in court, in September and October 2014, the FBI’s Northern Connecticut Violent Crime Gang Task Force and Hartford Police made 10 controlled purchases of heroin from ORTIZ.

ORTIZ was arrested on October 30, 2014.  On that date, a search of ORTIZ’s apartment revealed quantities of fentanyl and heroin, a digital scale, a grinder used to process heroin and heroin packaging stamps.

After his arrest, and while he was released on bond to participate in a drug rehabilitation program, ORTIZ absconded.  He was arrested in Puerto Rico on June 23, 2016.

ORTIZ has been detained since his arrest.  On May 18, 2017, he pleaded guilty to one count of maintaining a drug involved premises, and one count of escape.

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL HULL, 60, of Shelton, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of receipt of child pornography.

According to court documents and statements made in court, on May 31, 2017, Homeland Security Investigations (HSI) agents conducted a court-authorized search of HULL’s Shelton residence and seized approximately 16 electronic devices, including computers and external hard drives.  A forensic examination of the seized devices revealed approximately 13 images and 126 videos of child pornography, including images and videos depicting children younger than 12 engaged in sexually explicit conduct.

The investigation also revealed that HULL had a video camera installed in his bathroom, which captured images of individuals, including children, who used his bathroom.

Judge Underhill scheduled sentencing for April 24, 2018, at which time HULL faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.

HULL has been detained since his arrest on May 31, 2017.

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

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

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that RUBEN MORALES, 44, of Hartford, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of distribution of heroin and fentanyl.

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

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

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

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

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

MORALES was arrested on a federal complaint on February 16, 2017.

MORALES is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 2, 2018, at which time he faces a maximum term of imprisonment of twenty years.  He is released on a $100,000 bond pending sentencing.

The FBI’s Northern Connecticut Violent Crime Gang Task Force includes members from the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.

John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN VIBBERT, 37, of Fairfield, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl involved in an overdose death.

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, in the early hours of May 31, 2016, Connecticut State Police and emergency medical personnel responded to a residence in Deep River and found an unresponsive 35-year-old male.  Although CPR was performed and Narcan was administered, the man was pronounced deceased at the scene.

The investigation, which has included analysis of the victim’s cellphone and a witness interview, revealed that, on May 30, 2016, the victim contacted VIBBERT to purchase heroin.  The victim then drove to a restaurant near I-95 in Bridgeport where he met VIBBERT to complete the purchase.

The Office of the Chief Medical Examiner determined the victim’s cause of death to be “acute heroin and fentanyl toxicities.”

VIBBERT was arrested on a criminal complaint on March 27, 2017.  On August 23, 2017, he pleaded guilty to one count of distribution of heroin and fentanyl.

VIBBERT, who is released on a $50,000 bond, was ordered to report to prison on April 30.

This matter was investigated by the Drug Enforcement Administration and the Connecticut State Police, with the assistance of the Monroe 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, announced that WANDA PISCIL, 52, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for distributing heroin.

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 Gonzalez, also known as “Antonio” and “Julian,” and his brother, Antonio Gonzalez, also known as “Bienve.”  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 PISCIL, in New Haven and elsewhere.

The investigation resulted in federal charges against 24 individuals.

PISCIL was arrested on March 16, 2017.  On November 1, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribution of, heroin. 

Bienvenido and Antonio Gonzalez previously 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 PETER J. SANTOS, 41, of Manchester, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 41 months of imprisonment, followed by two years of supervised release, for threatening a federal official.  On June 2, 2017, a jury found SANTOS guilty of the offense.

According to the evidence presented during the trial, in January 2014, SANTOS was sentenced in the Southern District of New York to 25 months of imprisonment, followed by three years of supervised release, for conspiring to transport stolen goods, conspiring to receive stolen goods and conspiring to commit wire fraud.  On December 31, 2015, after completing his period of incarceration, he began serving his three-year period of supervised release, which was transferred to the U.S. Probation Office in the District the Connecticut.

While on supervised release, SANTOS tested positive for controlled substances on multiple occasions.  On August 31, 2016, SANTOS appeared before U.S. District Judge Janet Bond Arterton in New Haven for a supervised release violation hearing.  Judge Arterton revoked SANTOS’ supervised release and imposed a penalty of six months of imprisonment to be followed by 24 months of additional supervised release.  As the U.S. Marshals were walking SANTOS out of the courtroom, SANTOS looked at his supervising U.S. Probation Officer and stated “When I get out, I’m coming for you.”  The Probation Officer responded, “Excuse me?”  SANTOS responded, “You heard me.”

After they left the courtroom, a Deputy U.S. Marshal said to SANTOS, “That’s not smart.”  SANTOS responded by stating that he did not care and he was tired of it, adding that, “Everyone has to meet their maker whether it is by me or some other way.”

The investigation revealed that SANTOS made additional threats while he was incarcerated on the supervised release violation.

SANTOS has been detained since his arrest on January 30, 2017.

This matter was investigated by the U.S. Marshals Service and was prosecuted by U.S. Attorney John H. Durham.

Eight individuals who allegedly engaged in various deceptive trading practices on commodities markets in the United States have been publicly charged with federal crimes.  Seven of the eight individuals were charged with the crime of spoofing, an illegal trading practice that can be used to manipulate the commodities markets.  Other than the individuals identified today, only three other individuals have ever been publicly charged with the crime of spoofing.  Of those identified today, five were traders employed by global financial institutions, two were traders at large commodities trading firms, and one was the owner of a technology consulting firm. 

 

The enforcement actions were announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Assistant Director Chris Hacker of the FBI’s Criminal Investigative Division and Director James McDonald of the U.S. Commodity Futures Trading Commission’s (CFTC) Division of Enforcement.

 

The charges announced today aggressively target, among other things, the practice of spoofing, which was allegedly employed in various forms by these defendants and/or their co-conspirators to manipulate the market for futures contracts traded on the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), and the Commodity Exchange Inc. (COMEX).  The defendants and their co-conspirators are alleged to have defrauded market participants and manipulated these markets by placing hundreds, and in some cases, thousands of orders that they did not intend to trade, or “spoof orders,” to create the appearance of substantial false supply and demand and to induce other market participants to trade at prices, quantities, and times that they otherwise would not have traded.  According to the charging documents, the spoof orders often had the effect of artificially depressing or artificially inflating the prices of futures contracts traded on CME, CBOT, and COMEX.  In order to take advantage of the artificial price levels created by their spoof orders, the defendants and/or their co-conspirators are alleged to have executed real, genuine orders to buy (at the artificially low prices) or to sell (at the artificially high prices) in order to generate trading profits or to illicitly mitigate other trading losses.        

 

“As alleged, the defendants in these cases engaged in sophisticated schemes or trading practices aimed at defrauding individuals and entities trading on U.S. futures exchanges,” said Acting Assistant Attorney General Cronan.  “Conduct like this poses significant risk of eroding confidence in U.S. markets and creates an uneven playing field for legitimate traders and investors.  The Department and our law enforcement partners will use all of the tools at our disposal, including cutting-edge data analysis, to detect these types of schemes and to bring those who engage in them to justice.  Protecting the integrity of our markets remains a significant priority in our fight against economic crime.”

 

“The FBI has taken enforcement action against multiple commodities traders who, for their own personal gain, were spoofing trades through electronic trading platforms,” said Deputy Assistant Director Chris Hacker.  “Their deceptive trading artificially affected the perception of supply and demand in the market and took away a level playing field for investors.  We ask for those who observe indicators of this type of fraud to come forward to law enforcement so that we can stop those who attempt to exploit our financial system.” 

 

“Spoofing is a particularly pernicious example of bad actors seeking to manipulate the market through the abuse of technology,” said Director McDonald.  “The technological developments that enabled electronic and algorithmic trading have created new opportunities in our markets.  At the CFTC, we are committed to facilitating these market-enhancing developments.  But at the same time, we recognize that these new developments also present new opportunities for bad actors.  We are equally committed to identifying and punishing these bad actors.  The CFTC’s enforcement program is built around the twin goals of holding wrongdoers accountable and deterring future misconduct.  We believe these goals are best achieved when we hold accountable not just companies, but also the individuals involved.  As these cases show, we will work hard to identify and prosecute the individual traders who engage in spoofing, but we will also seek to find and hold accountable those who teach others how to spoof, who build the tools designed to spoof, or who otherwise aid and abet the wrongdoing.  These cases should send a strong signal that we at the CFTC are committed to identifying individuals responsible for unlawful activity and holding them accountable.” 

           

Northern District of Illinois

 

Six individuals have been charged in four cases with spoofing and/or manipulative conduct charged in the Northern District of Illinois including:

• James Vorley, 37, of the United Kingdom, and Cedric Chanu, 39, a French citizen, are charged in a criminal complaint with conspiracy, wire fraud, commodities fraud, and spoofing offenses in connection with executing a scheme to defraud involving both solo and coordinated spoofing on the COMEX while they were employed as precious metals traders at a leading global financial institution.  Vorley was based in London, United Kingdom and Chanu was based in London, and the Republic of Singapore.
• Edward Bases, 55, of New Canaan, Connecticut, and John Pacilio, 53, of Southport, Connecticut, are charged in a criminal complaint with commodities fraud in connection with an alleged scheme to engage in both solo and coordinated spoofing on the COMEX when they were employed as precious metals traders at a leading global financial institution.  Bases is also charged with spoofing offenses.  Bases and Pacilio were based in New York City.    
• Jitesh Thakkar, 41, of Naperville, Illinois, is charged in a criminal complaint with conspiracy and spoofing offenses alleging that Thakkar developed a software program that was used by Thakkar’s co-conspirator to engage in spoofing through the placement of thousands of orders on the CME when Thakkar was the founder and principal of Edge Financial Technologies Inc. (“Edge”), an information technology consulting firm located in Chicago, Illinois.
• Jiongsheng (“Jim”) Zhao, 30, of Australia, is charged in a criminal complaint with wire fraud, commodities fraud, making false statements to the CME, and spoofing offenses when he was a trader at a proprietary trading firm located in Sydney, Australia.  According to the complaint, data analysis identified hundreds of instances of spoofing by Zhao on the CME between approximately July 2012 and March 2016.  Additionally, the complaint alleges that Zhao made false written statements to the CME after being confronted with allegations of his disruptive trading practices.       

 

District of Connecticut

• Andre Flotron, 53, a Swiss national currently residing in Wayne, New Jersey, has been charged in an indictment in the District of Connecticut with conspiracy to commit spoofing, wire fraud, and commodities fraud when he was a UBS AG precious metals trader at UBS’s trading desks in Stamford, Connecticut and Zurich, Switzerland.  The indictment also alleges that Flotron trained and instructed another UBS trader in the practice of using spoof orders.

 

Southern District of Texas

• Krishna Mohan, 33, of New York, New York, is charged in a criminal complaint filed in the Southern District of Texas with commodities fraud and spoofing offenses when he was employed as a programmer and trader at a proprietary trading firm in Chicago, Illinois.  According to the complaint, data analysis identified that Mohan engaged in a pattern of spoofing over a thousand times in a two-month period. 

 

Today’s enforcement actions were led and coordinated by the Criminal Division Fraud Section’s Securities and Financial Fraud Unit and the U.S. Attorney’s Office for the District of Connecticut, in conjunction with special agents from FBI Offices in New York, Chicago, Connecticut, and Houston, and with invaluable assistance from the Fraud Section’s partners at the U.S. Attorney’s Office for the Northern District of Illinois, the U.S. Attorney’s Office for the Southern District of Texas, the U.S. Postal Inspection Service and the CFTC’s Division of Enforcement.  The cases are being prosecuted by Assistant Chiefs Nicholas Surmacz and Carol Sipperly and Trial Attorneys Michael O’Neill, Matthew Sullivan, Jeffrey Le Riche, Michael Rinaldi, Cory Jacobs, and Mark Cipolletti of the Fraud Section’s Securities and Financial Fraud Unit, along with Assistant U.S. Attorney Avi Perry of the U.S. Attorney’s Office for the District of Connecticut.

 

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website or call 889-549-3945 for more information.

 

To obtain information on the CFTC’s resolutions with three global financial institutions, please go to: http://www.cftc.gov/PressRoom/PressReleases/index.htm.

John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT BOWENS, 34, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 76 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, on April 22, 2017, Connecticut State Police stopped a vehicle BOWENS was operating on I-95 in Bridgeport.  BOWENS attempted to flee and, during a struggle with troopers, produced a 9mm handgun.  Troopers knocked the firearm from BOWENS’ hand, but BOWENS broke free, jumped into an SUV that had arrived at the scene, and the vehicle fled.  BOWENS was apprehended on May 9.

BOWENS’ criminal history includes state felony convictions for possession with intent to sell, criminal possession of a weapon, and forgery.  He also has a prior federal conviction for possession of a firearm by a previously convicted felon, for which he was sentenced, in May 2009, to 57 months of imprisonment.

BOWENS has been detained since his arrest.  On November 6, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police, with the assistance of the U.S. Marshals Connecticut Violent Fugitive Task Force and the Bridgeport Police Department.  The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL CHAPMAN, also known as “Nice” and “Mizzo,” 26, of New Britain, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by five years of supervised release, for supplying crack cocaine to a Hartford drug trafficking organization.

According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses.  The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets.  The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015.  The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.

The investigation revealed CHAPMAN converted cocaine to crack cocaine and supplied the drug to the OSK drug trafficking organization for street sale.

On February 10, 2017, investigators arrested CHAPMAN and several of his codefendants.  On that date, a search of CHAPMAN’s New Britain residence revealed a firearm and a quantity of crack.

CHAPMAN has been detained since his arrest.  On November 3, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack”).

CHAPMAN’s criminal history includes convictions for larceny, possession of narcotics, weapon in a motor vehicle, and violation of probation.

Sixteen individuals were charged as a result of the investigation.

This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department.  The Task Force includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that NORBERTO RODRIGUEZ, also known as “Primo,” 44, formerly of Hartford, pleaded guilty today in New Haven federal court to one count of distribution of heroin.

According to court documents and statements made in court, law enforcement received information that RODRIGUEZ was selling heroin and crack cocaine in the area of Madison Street in Hartford.  On June 9, 2016, investigators made a controlled purchase of 51 wax folds of heroin from RODRIGUEZ at a location on Franklin Avenue in Hartford.  Laboratory analysis of the purchased substance revealed the presence of heroin, acetylfentanyl and furanyl fentanyl.

RODRIGUEZ was arrested on a federal criminal complaint on June 5, 2017.  He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on April 20, 2018, at which time he faces a maximum term of imprisonment of 20 years.

RODRIGUEZ, who currently resides in Waterbury, is released on a $50,000 bond pending sentencing.

This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL BALDWIN, 20, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to one day of imprisonment, time already served, and three years of supervised release, for possessing a stolen firearm.  Judge Bryant also ordered BALDWIN to perform 120 hours of community service while on supervised release.

According to court documents and statements made in court, on April 10, 2016, Hamden Police arrested BALDWIN after he and other individuals fled from police in a stolen car.  After a pursuit, the vehicle crashed into a pole and BALDWIN, who had not been driving, fled from officers on foot.  He was subsequently taken into police custody.  A search of BALDWIN’s person revealed a plastic bag containing crack cocaine packaged for street sale, and a makeshift firearm holster around his stomach.  Officers also located and seized a Springfield Armory XD .40 caliber handgun that had been discarded next to the crashed vehicle.

The firearm had previously been reported stolen from a residence in Hamden.

On April 5, 2017, BALDWIN pleaded guilty to one count of possession of a stolen firearm.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hamden Police Department.  The case was prosecuted by Assistant U.S. Attorneys Natasha Freismuth and Peter Markle.

John H. Durham, United States Attorney for the District of Connecticut, announced that COREY SENIOR, 26, of New Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin.

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

According to court documents and statements made in court, on April 27, 2017, the Shelton Police Department and emergency medical services responded to a Shelton residence after a report of a suspected drug overdose of a 34-year-old female.  The victim was pronounced deceased at the scene.  Officers seized drug and non-drug evidence, including bags that appeared to have contained heroin, and a hypodermic needle.  Investigators also seized the victim’s cellphone.

On April 28, 2017, the victim’s cellphone received a text from SENIOR and an officer, posing as the victim, arranged to purchase heroin from SENIOR.  Shelton Police arrested SENIOR later that day after he arrived at the victim’s residence in possession of suspected heroin.

The investigation revealed that SENIOR had provided heroin to the victim shortly before the victim’s death.

SENIOR was arrested on a federal criminal complaint on May 16, 2017.

SENIOR faces a maximum term of imprisonment of 20 years.  A sentencing date is not scheduled.

This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Shelton Police Department.  This 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 MARCUS TYSON, 32, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.

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.  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 TYSON, Byron Rivera and Ronald Perez inside.  A search of the apartment revealed more than 39,000 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.  TYSON, Rivera and Perez were arrested at that time.

On June 2, 2017, TYSON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.  Rivera and Perez also have pleaded guilty.  On August 29, 2017, Rivera was sentenced to 60 months of imprisonment.  Perez awaits sentencing.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD ESTABA, also known as “Raw,” 23, of Bridgeport, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin.

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

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

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

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

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

Judge Underhill scheduled sentencing for April 18, 2018, at which time ESTABA faces a maximum term of imprisonment of 20 years. 

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

This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

John H. Durham, United States Attorney for the District of Connecticut, today announced that KEVIN DUNN, 49, of Watertown, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to a conspiracy offense related to a bribery scheme.

According to court documents and statements made in court, DUNN is the president of Delmar Electrical Contractors in Watertown.  Javed Choudhry was employed by a construction company in the Stamford area.  Between approximately 2011 and 2014, DUNN paid between $200,000 to $300,000 in bribes to Choudhry, either directly or through another contractor, to receive approximately $21 million in contracts on construction projects in Stamford.

DUNN pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years.  He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on April 16, 2018.

DUNN is released on a $150,000 bond.

On May 16, 2017, Choudhry, of Glastonbury, pleaded guilty to conspiracy and tax offenses stemming from this scheme.  He awaits sentencing.

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

John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven returned an indictment yesterday charging CANDACE RISPOLI, 31, of Stamford, with one count of wire fraud stemming from an embezzlement scheme.

RISPOLI appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $100,000 bond.

As alleged in the indictment, from approximately January 2012 until June 2016, RISPOLI was employed by Lodestone Management Consultants, later known as Infosys Consulting (the “Company”).  Beginning in approximately 2013, RISPOLI worked for the Company from former home in East Haven, which she shared with her then-boyfriend, Michael Miano.  In her capacity as a Company employee, RISPOLI had an American Express credit card to use to pay for travel, entertainment and other business expenses incurred by the Company’s employees and potential employees.

The indictment alleges that, from approximately 2013 until June 2014, RISPOLI wrongfully charged her own and Miano’s personal expenses to the Company’s American Express card.  RISPOLI also wrongfully transferred funds from the Company’s American Express card to PayPal and Venmo accounts controlled by RISPOLI and Miano.  To conceal her scheme, RISPOLI altered the Company’s American Express account statements and created false billing summaries, which she emailed to the Company’s accounting firm.

It is alleged that RISPOLI and Miano stole at least $800,000 as part of this scheme.

If convicted of the charge in the indictment, RISPOLI faces 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 each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

On September 1, 2017, Miano, 31, of Branford, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit wire fraud.  He is released on a $100,000 bond pending sentencing.

This investigation is being conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.

John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTONIO GONZALEZ, also known as “Bienve,” 47, of New Haven, 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 distribution of, one kilogram or more of heroin.

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 GONZALEZ and his brother, Bienvenido 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 in New Haven and elsewhere.

The investigation resulted in federal charges against 24 individuals.

ANTONIO GONZALEZ has been detained since his arrest on March 16, 2017.  Judge Meyer scheduled sentencing for April 12, 2018, at which time GONZALEZ faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

Bienvenido Gonzalez pleaded guilty to the same charge on November 30, 2017.  As part of his plea, he agreed to forfeit $10,000 in cash that was seized from a stash house he operated in East Haven, his interest in a New Haven barbershop located on Farren Street in New Haven, a Dodge Ram truck, and two race cars.  He awaits sentencing.

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

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

John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN MALDONADO, also known as “Chewy,” 31, of West Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing fentanyl and PCP to an overdose victim in 2016.  Judge Underhill also ordered MALDONADO to pay restitution to the victim’s family to cover the victim’s funeral expenses.

 

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 25, 2016, Bristol Police and emergency medical personal responded to a Bristol residence on a report of an untimely death and encountered a deceased 24-year-old female on a bed in the residence.  At the scene, officers seized drug and non-drug evidence, including the victim’s cellphone, numerous wax folds that are typically used to package heroin, and two Naloxone injectors (one used and one unused) contained within an overdose kit.  A witness at the scene reported that the victim had recently sought medical assistance for bleeding from the ears.

 

The Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died from fentanyl and PCP intoxication.

 

The investigation revealed that MALDONADO provided drugs to the victim shortly before her death.  The victim’s cellphone contained numerous text messages between MALDONADO and the victim.  In one text message sent the day before she was found dead, the victim stated “Omg! Im bleeding out my ears!! Wat did u giv me?”

 

MALDONADO was arrested on May 26, 2016.  On September 26, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl and phencyclidine (“PCP”).

 

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Bristol 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 MATTHEW HARWOOD, 43, of Stratford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by three years of supervised release, for his role in a large-scale fencing operation.  Judge Shea also ordered HARWOOD to pay a $35,000 fine and perform 100 hours of community service while on supervised release.

According to court documents and statements made in court, between January 2012 and December 2014, HARWOOD participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resell the property at online websites.  HARWOOD, his co-conspirator Andrew Sacco, and others instructed the boosters to steal certain items from retail stores such as Petco, Staples, Walmart, and Bed Bath & Beyond, and paid cash for the stolen items at approximately one-third of their retail price.  At times, HARWOOD provided expenses for car rentals and spending money for overnight or out-of-state trips to steal products.

After receiving the stolen merchandise, HARWOOD and Sacco stored the merchandise at multiple locations, including HARWOOD’s former residence in Durham, Sacco’s former residence in Durham, and business locations in North Haven.  HARWOOD and Sacco then sold the stolen products at online sites, including eBay and Amazon.

Through this scheme, retailers lost more than $3.9 million.

On November 3, 2016, HARWOOD pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.

HARWOOD also has forfeited the house in Durham where he formerly resided, and two mutual fund accounts in his name.

HARWOOD, who is released on a $100,000 bond, was ordered to report to prison on March 19, 2018.

Sacco pleaded guilty to the same charges and, on December 6, 2017, was sentenced to 48 months of imprisonment.

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

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