District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARDO ROMAN-ROLAN, also known as “Benny,” 41, of North Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 68 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by Halby “Harv” Lopez. Omar Polanco-Mendez and ROMAN-ROLAN were the second and third in command, respectively. The investigation revealed that Lopez, Polanco-Mendez and ROMAN-ROLAN were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.

Investigators intercepted numerous conversations in which ROMAN-ROLAN discussed the distribution of cocaine. Intercepted calls also revealed that, in January 2016, ROMAN-ROLAN received two shipments of cocaine on behalf of Lopez and Polanco-Mendez.

On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging ROMAN-ROLAN, Lopez, Polanco-Mendez and seven other individuals with various narcotics offenses. All of the defendants pleaded guilty.

ROMAN-ROLAN has been detained since his arrest on March 11, 2016. On October 7, 2016, he pleaded guilty to one count of conspiracy to distribute between 500 grams and two kilograms of cocaine.

ROMAN-ROLAN’s criminal history includes convictions for drug trafficking and manslaughter.

On February 24, 2017, Polanco-Mendez was sentenced to 120 months of imprisonment. Lopez awaits sentencing.

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

This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAQUILLE PEARSON, 23, of New Haven, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of possession of a firearm by a convicted felon.

According to court documents and statements made in court, on June 30, 2016, officers from the New Haven Police Department executed a search and seizure warrant at PEARSON’s residence on Button Street in New Haven. In the residence, an officer encountered PEARSON who was holding a sneaker that contained a loaded 9mm pistol. A subsequent search of the residence also revealed a .380 handgun that was hidden in another sneaker.

Prior to June 2016, PEARSON was convicted of state felony offenses, including carrying a dangerous weapon and third degree burglary. 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.

Chief Judge Hall scheduled sentencing for May 24, 2017, at which time PEARSON faces a maximum term of imprisonment of 10 years. PEARSON 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, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Peter D. Markle.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TEDDY STUART LOPEZ, JR., also known as “Chico” and “Junior,” 20, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by five years of supervised release, for distributing 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 or statements made during court proceedings, on May 10, 2016, North Haven Police and emergency medical personnel responded to a report of an unresponsive man on the Hartford Turnpike in North Haven. The 23-year-old man was transported to the hospital where he later died. The victim’s family later turned over to law enforcement a wax fold of heroin. The investigation revealed that the victim likely purchased heroin from LOPEZ in Waterbury earlier that day.

Between July 5 and July 8, 2016, investigators made two controlled purchases of heroin from LOPEZ.

LOPEZ was arrested on July 19, 2016. At the time of his arrest, he possessed 40 bags of heroin. A subsequent search of his residence revealed 150 bags of heroin, $1,600 in cash, a grinder, a digital scale, cutting agents, cellular telephones, and drug packaging material.

On November 16, 2016, LOPEZ pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.

This matter was investigated by the DEA’s New Haven Task Force, which includes DEA agents and task force officers from the North Haven, East Haven, West Haven, New Haven, Hamden, Branford, Ansonia, Derby, and Meriden Police Departments.

This case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MATTHEW DRAGONE, 32, of Middletown, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 72 months of imprisonment, followed by three years of supervised release, for robbing six banks, and attempting to rob a seventh bank, in 2015.

According to court documents and statements made in court, DRAGONE robbed the Webster Bank at 145 Highland Avenue in Cheshire on August 12, 2015; the TD Bank at 1127 Farmington Avenue in Berlin on August 13, 2015; the Liberty Bank at 151 Main Street in Deep River on August 17, 2015; the TD Bank at 25 Wells Road in Wethersfield on August 31, 2015; the Webster Bank at 377 Cromwell Avenue in Rocky Hill on September 9, 2015 (attempt); the Liberty Bank at 357 Main Street in Durham on September 3, 2015, and the TD Bank at 184 Clinton Road in Killingworth on September 11, 2015. During each of the robberies, DRAGONE, wearing a baseball cap and dark sunglasses and holding a cellphone to his ear, presented a teller with a bank-style bag affixed with a note that demanded money.

On September 16, 2015, a search of DRAGONE’s residence revealed clothing and sunglasses consistent with those worn during the Durham robbery on September 3, as well as a bank-style bag consistent with the one used during several of the bank robberies.

DRAGONE was arrested on September 18, 2015. On February 16, 2016, he pleaded guilty to one count of bank robbery.

This investigation was conducted by the Federal Bureau of Investigation, the Connecticut State Police and the Middletown, Cheshire, Berlin, Wethersfield, and Rocky Hill Police Departments, with the assistance of the Connecticut Department of Emergency Services and Public Protection, Division of Scientific Services. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that VINCENTE RIVERA, also known as “Macho,” 37, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 72 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine and selling a firearm.

According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.

The investigation revealed that RIVERA was involved in the distribution of crack and powder cocaine. In February and March 2015, investigators intercepted numerous drug-related conversations over RIVERA’s telephone. In addition, in April 2015, RIVERA sold a .25 caliber pistol to a government informant.

RIVERA has been detained since his arrest on June 15, 2015. On August 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”).

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.

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

This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.

Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL HAMLETT, SR., 55, formerly of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for committing an armed robbery of a Seymour bank in 2013.

According to court documents and statements made in court, on April 9, 2013, HAMLETT drove a stolen vehicle to the Webster Bank on New Haven Road in Seymour. Wearing a mask, he exited the vehicle, approached an individual who was seated in his parked car, took out a handgun, smashed the driver’s side front window and demanded money from the victim. When the victim responded that he didn’t have any money, HAMLETT took the victim’s car keys and cell phone and told him not to move.

HAMLETT then entered the bank, ordered everyone to get on the floor, jumped over the teller counter and forcibly took $5,594 in cash from two teller drawers. He then jumped back over the teller counter, exited the bank and fled in the stolen vehicle. HAMLETT then met his son, Daniel Hamlett, Jr., who picked up his father and eluded law enforcement.

HAMLETT was arrested in Georgia on November 13, 2014, and has been detained since his arrest. On September 14, 2015, he pleaded guilty to one count of armed bank robbery.

Daniel Hamlett, Jr. also pleaded guilty and has been sentenced.

This matter was investigated by the FBI and the Seymour Police Department. The case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Sarala V. Nagala.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADAM M. SIMPSON, 30, a former member of the U.S. Navy who was stationed in New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for enticing minors to perform sexually explicit acts during online video chats.

According to court documents and statements made in court, between approximately January 2013 and November 2013, SIMPSON used internet-based video chatting services such as Skype, Omegle, and ooVoo, to entice girls between the ages of 12 and 16 to perform sexual acts and engage in sexually explicit conduct, which SIMPSON then recorded and saved on his computer. In order to deceive the minors, SIMPSON misrepresented his age and utilized videos of young boys to impersonate being a young boy himself.

SIMPSON, of Benton, Pennsylvania, has been detained since his arrest on related state charges on January 7, 2014. On June 29, 2016, he pleaded guilty to one count of using an interstate facility to entice a minor to engage in unlawful sexual activity.

This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The U.S. Naval Criminal Investigative Service also provided critical assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS PEREZ, also known as “Carlito,” 43, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 41 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by Halby “Harv” Lopez. The investigation revealed that Lopez, and his associates, Omar Polanco-Mendez and Bernardo “Benny” Roman-Rolan, were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers, including PEREZ. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.

On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging PEREZ, Lopez, Polanco-Mendez, Roman-Rolan and six other individuals with various narcotics offenses. All of the defendants pleaded guilty.

PEREZ has been detained since his arrest on March 16, 2016. On September 27, 2016, he pleaded guilty to one count of conspiracy to distribute between 200 and 300 grams of cocaine.

On February 24, 2017, Polanco-Mendez was sentenced to 120 months of imprisonment. Lopez and Roman-Rolan await sentencing.

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

This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that, on February 24, 2017, YACOV OCASIO, also known as “Little,” 21, of Hartford, waived his right to be indicted and pleaded guilty before U.S. District Judge Alvin W. Thompson in Hartford to one count of possession with intent to distribute, and distribution of, heroin.

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 August 26, 2016, Middletown Police and emergency medical personnel responded to a Middletown apartment on the report of a possible overdose and found an unresponsive 28-year-old male lying in a bed. Medical intervention was unsuccessful and the victim was pronounced dead. Officers located and seized one torn baggy, commonly used to package heroin, from the victim’s pants pocket. Officers also seized the victim’s iPhone.

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

The investigation revealed that, on August 25, 2016, the victim arranged to purchase heroin from OCASIO, and then drove to Hartford to complete the purchase.

In November 2016, investigators conducted a controlled purchase of heroin from OCASIO.

OCASIO was arrested on a federal criminal complaint on January 18, 2017.

Judge Thompson scheduled sentencing for May 24, 2017, at which time OCASIO faces a maximum term of imprisonment of 20 years. OCASIO is released on a $50,000 bond.

This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the Middletown Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.

The case is being prosecuted by Assistant U.S. Attorneys Robert Spector and Jocelyn Kaoutzanis, and Senior Assistant State’s Attorney Eugene Calistro, who is cross-designated as a Special Assistant U.S. Attorney in this matter.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRANDON PAUL QUAINTON, 23, of Detroit, Michigan, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for his role in a smash-and-grab robbery of a Stamford jewelry store in November 2014.

According to court documents and statements made in court, on November 26, 2014, Dajuhn Griffin, stole a Stamford resident’s SUV and then drove with QUAINTON, Richard Mathew Bailey and Brian Moore to the Stamford Town Center Mall during regular business hours. At the mall, QUAINTON stayed in the car while Griffin, Bailey and Moore, armed with hammers, entered Sidney Thomas Jewelers. The three then used hammers to smash open a jewelry display case and removed more than $250,000 worth of Rolex watches. They then fled with security guards in pursuit. Bailey was caught and apprehended inside the mall while fleeing, but QUAINTON, Griffin and Moore eluded capture at that time.

After the robbery, Stamford Police found the stolen SUV running in the mall’s parking garage.

The investigation revealed that QUAINTON and Moore organized the robbery and solicited others to participate in it.

QUAINTON was arrested in Detroit on November 30, 2015. On July 21, 2016, he pleaded guilty to one count of interfering with commerce by robbery.

Bailey, Griffin and Moore, also from Detroit, pleaded guilty to the same charge. On November 23, 2015, Moore was sentenced to 48 months of imprisonment; on January 28, 2016, Griffin was sentenced to 51 months of imprisonment and, on September 6, 2016, Bailey was sentenced to 24 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation and the Stamford Police Department. The case was prosecuted by Assistant U.S. Attorneys Amy C. Brown and Gabriel J. Vidoni.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging LESHANDA LONG, 36, of New Haven, with five counts of wire fraud and two counts of aggravated identity theft.

The indictment was returned yesterday and LONG was arrested today. LONG appeared this afternoon before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on bond.

As alleged in the indictment, in August 2016, LONG stole the identity of an individual and used the misappropriated identity to obtain a credit card, rent an automobile, pay personal expenses and obtain cash advances.

The charge of wire fraud carries a maximum term of imprisonment of 20 years and a fine of up to $250,000, on each count, and the charge of aggravated identity theft carries mandatory consecutive term of imprisonment of 24 months.

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

This matter is being investigated by the U.S. Postal Inspection Service, the West Haven Police Department and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that OMAR POLANCO-MENDEZ, 40, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by Halby “Harv” Lopez. POLANCO-MENDEZ and Bernardo “Benny” Roman-Rolan were the second and third in command, respectively. The investigation revealed that Lopez, POLANCO-MENDEZ and Roman-Rolan were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.

On February 11, 2016, POLANCO-MENDEZ arranged for the delivery of approximately two kilograms of cocaine, which was intercepted and seized by law enforcement. On March 2, 2016, POLANCO-MENDEZ arranged and took delivery of one kilogram of cocaine. On March 11, 2016, POLANCO-MENDEZ was arrested after he took possession of approximately two kilograms of cocaine, the delivery of which had been arranged by Lopez.

On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging POLANCO-MENDEZ, Lopez, Roman-Rolan and seven other individuals with various narcotics offenses. All of the defendants pleaded guilty.

POLANCO-MENDEZ has been detained since his arrest. On September 7, 2016, he pleaded guilty to one count of conspiracy to distribute between five kilograms and 15 kilograms of cocaine.

Lopez and Roman-Rolan await sentencing.

The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.  This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COREY JERRICK, 30, of East Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 94 months of imprisonment, followed by four years of supervised release, for distributing heroin, and for violating the conditions of his supervised release from a prior federal conviction.

According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration Hartford Task Force investigation into a drug trafficking organization that distributed large quantities of heroin in the Hartford area.

Between March 2015 and May 2015, investigators intercepted numerous calls during which JERRICK discussed and arranged narcotics transactions. On May 13, 2015, one of JERRICK’s associates traveled from Hartford to New York City where law enforcement officers conducted a motor vehicle stop of the car and seized approximately $125,000 in cash.

JERRICK and several co-conspirators were arrested on June 4, 2015. On that date, a search of JERRICK’s East Hartford apartment revealed approximately 500 grams of heroin, thousands of bags used to package heroin, a heroin brand stamp and other items. Additional quantities of heroin and packaging materials were seized during searches of locations connected to JERRICK’s co-defendants.

JERRICK has been detained since his arrest on June 4, 2015. On September 13, 2016, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.

JERRICK’s criminal history includes state drug convictions, and a federal conviction in 2012 for possession with intent to distribute heroin, which resulted in a 37-month prison term and three years of supervised release. JERRICK was released from federal prison in September 2014 and began serving his three-year term of supervised release.

Judge Bryant imposed a 70-month prison term for the heroin conspiracy conviction, and a consecutive 24-month prison term for the supervised release violation.

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

This matter has been investigated by the Drug Enforcement Administration’s Hartford Task Force, which includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments, with the assistance of the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging MICHAEL LEDBETTER, 26, of Hartford, with one count of possession of ammunition by a convicted felon.

As alleged in court documents, on November 27, 2016, members of Hartford Police were dispatched to a residence on Nelson Street on a report of a possible domestic assault. LEDBETTER left the residence shortly before police arrived. A short time later, an officer located LEDBETTER in a vehicle on Barbour Street. After LEDBETTER was secured in handcuffs, an officer conducted a pat down of his person and discovered one .40 caliber Hornady live round in LEDBETTER’s right front pocket.

It is further alleged that, on April 9, 2014, LEDBETTER was convicted in Connecticut Superior Court of six counts of accessory to first degree assault.

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

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

LEDBETTER has been detained since his arrest on a federal criminal complaint on February 12, 2017.

U.S. Attorney Daly 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 investigation is being conducted by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Assistant State’s Attorney John F. Fahey of the Hartford State’s Attorney’s Office, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON J. JOHNSON, 36, of Haddam, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of mail fraud stemming from a scheme to defraud clients of his investment business.

According to court documents and statements made in court, JOHNSON was President and Chief Investment Officer of J. Capital Advisors, and was a registered investment advisor until October 21, 2013, when his and J. Capital Advisors’ registration was revoked by the State of Connecticut

In approximately April 2010, JOHNSON became a registered investment advisor with Trade PMR, a Florida company that provides brokerage and custody services for registered investment advisors. Almost immediately, JOHNSON began skimming excessive and unearned fees from client accounts. JOHNSON would submit a request to Trade PMR for fees for a particular client supposedly earned during a particular time period, and Trade PMR would, in turn, arrange for those fees to be deducted from the client’s account and deposited into a J. Capital Advisors’ sundry account over which JOHNSON maintained exclusive control. By December 2012, when Trade PMR terminated its relationship with JOHNSON, JOHNSON had taken a total of $619,231.09 in excessive fees from 19 victim clients.

JOHNSON also attempted to delay and prevent the discovery of the full scope of his scheme by repaying fees he took from one victim, claiming to the victim and to investigators with the State of Connecticut Department of Banking, Securities and Business Investments Division, that the fees were taken out due to a “glitch” in his billing system.

Judge Meyer scheduled sentencing for May 23, 2017, at which time JOHNSON faces a maximum term of imprisonment of 20 years.

JOHNSON was arrested on February 17, 2016, and is currently released on a $250,000 bond.

This matter has been investigated by the U.S. Postal Inspection Service and the State of Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEVAUGHN WATSON, 23, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 46 months of imprisonment, followed by three years of supervised release, for distributing heroin.

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 August 18, 2016, Trumbull Police and emergency medical personnel responded to a residence in Trumbull and found an unresponsive 25-year-old female on the floor of a bedroom. The victim was pronounced deceased shortly thereafter. Investigators searched the victim’s pocketbook and found several empty wax folds and some wax folds that contained suspected heroin. Analysis of text messages contained on the victim’s cellphone revealed that the victim had ordered heroin from WATSON several times over the course of approximately two months prior to the victim’s death.

WATSON has been detained since his arrest on September 7, 2016. On December 1, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.

This matter was investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Trumbull and Monroe Police Departments, with the assistance of the Bridgeport Police Department.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that ISAIAH HART, 21, of Brooklyn, N.Y., pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to possess with intent to distribute, and to distribute, heroin. The charge 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, in the afternoon of December 8, 2015, Greenwich Police officers and emergency medical personnel responded to a Greenwich residence on the report of an unresponsive man. The man, who was 26, was pronounced dead. Within the residence, officers located and found opened and unopened wax folds (“bags”) with a green colored label “Emerald City” stamped on them.

The Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Services later analyzed the unopened bags and determined the powder contained heroin, and according to the Connecticut Chief Medical Examiner’s Office, the victim’s death was caused by acute heroin toxicity.

Investigators determined that the victim had contacted “Tony” to order heroin in response to a Craig’s List advertisement for “dog food.” On December 7, 2015, the victim drove from Greenwich to Brooklyn and purchased two bundles (20 bags) of heroin from HART for $185.

HART was arrested on a federal criminal complaint on April 14, 2016. He has related drug charges pending in Brooklyn stemming from his selling heroin, in bags stamped “Emerald City,” to an undercover law enforcement officer on December 8, 2015.

Judge Shea scheduled sentencing for May 18, 2017, at which time HART faces a maximum term of imprisonment of 20 years. HART is released on bond pending sentencing.

This matter is being investigated by the DEA’s New Haven Task Force and the Greenwich Police Department. The Task Force includes DEA agents and task force officers from the North Haven, East Haven, West Haven, New Haven, Hamden, Branford, Ansonia, Derby and Meriden Police Departments. U.S. Attorney Daly also acknowledged the significant assistance of the New York Police Department in this investigation.

This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed with the assistance of Law Student Intern William Kukin.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRYAN WHITE, 39, of New London, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to attempting to entice a minor to engage in illegal sexual activity.

According to court documents and statements made in court, in June and July 2016, WHITE used a cellular phone and Chat Bazaar, a video chatting service, to communicate with a 13-year-old female in New Jersey. In text messages, the minor victim repeatedly told WHITE her age. WHITE responded by saying that “age is just a number to deny u things” and that he is a “child lover.” The text exchanges with the victim were sexually explicit, and WHITE requested that the victim travel from New Jersey to Connecticut to engage in sexual activity with him.

On June 16, 2016, the victim’s father discovered the texts with WHITE on the victim’s phone and reported it to local police. A law enforcement officer then assumed the minor’s identity to continue to correspond with WHITE. Between June 29 and July 5, 2016, WHITE repeatedly asked the undercover officer, posing as the victim, to come to Connecticut and described the sexual activity he wanted to engage in with the victim. The undercover officer agreed to take a bus from New Jersey to Connecticut. WHITE explained that he would be at the bus terminal wearing a yellow “MICHIGAN” shirt and that he would bring condoms and pina colada wine coolers to the bus station.

On July 5, 2016, WHITE was arrested at the New London bus station at the designated time wearing the clothes that he said he would be wearing. At the time of his arrest, WHITE was in possession of a condom and two bottles of alcoholic beverages.

WHITE pleaded guilty to one count of attempted enticement of a minor to engage in unlawful sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment. Judge Thompson scheduled sentencing for May 23, 2017.

WHITE has been detained since his arrest.

This matter is being investigated by Homeland Security Investigations, the Burlington County (N.J.) Prosecutor’s Office, the Florence (N.J.) Township Police Department, the New London Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging TONEY KELSEY, also known as “Blaze,” 25, of Hartford, with one count of conspiracy to commit sex trafficking of a minor and three counts of sex trafficking of minors.

The indictment charges KELSEY with trafficking a minor victim in May and June 2015, a second minor victim in May 2016, and a third minor victim in November 2016. The indictment also charges KELSEY with conspiring to traffic these individuals and others.

Each charge carries a minimum term of imprisonment of 10 years and a maximum term of life imprisonment.

U.S. Attorney Daly 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.

KELSEY has been detained since his arrest by the Wethersfield Police Department on related state charges on November 30, 2016.

The case has been assigned to Chief U.S. District Judge Janet C. Hall in New Haven.

This matter is being investigated by the Federal Bureau of Investigation, Connecticut State Police, Homeland Security Investigations, Wethersfield Police Department and Hartford Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRADFORD BARNEYS, 51, of Odenton, Maryland, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to conspiring with Timothy W. Burke in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut. BARNEYS is an attorney licensed to practice in Connecticut and has an office in Bridgeport.

According to court documents and statements made in court, between approximately 2010 and November 2015, Timothy W. Burke, formerly of Easton, engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents that Burke presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. Burke also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, Burke rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that Burke owned the property.

Burke or one of his agents then collected rent from tenants, and Burke used the funds for his own benefit. He also failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties Burke purportedly purchased were ultimately foreclosed upon by the mortgage lender.

Burke undertook extensive efforts to disguise his true identity, and hide his criminal past, from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds.

Between approximately 2011 to at least 2014, BARNEYS participated in dozens of meetings with Burke and with homeowners at BARNEYS’ law offices in Bridgeport. At the meetings, Burke represented to homeowners that he would purchase their properties and presented to the homeowners quitclaim deeds, management agreements, indemnification agreements, and third party authorizations.

At some point after BARNEYS began representing Burke in these meetings with homeowners, BARNEYS knew that Burke had no intention of buying the properties and paying the outstanding mortgages on the properties. Nevertheless, BARNEYS continued to participate in these meetings and represented that these transactions were legitimate. When questioned by homeowners about the status of their sales, BARNEYS would assure them that their sales to Burke or one of his companies were progressing as Burke promised. BARNEYS also knew that, once Burke obtained the properties from the homeowners, he would rent them out to tenants.

BARNEYS also represented Burke and his companies in eviction proceedings against tenants.

BARNEYS pleaded guilty to one count of conspiracy to commit mail and wire a fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Shea scheduled sentencing for June 13, 2017.

On January 24, 2017, Burke pleaded guilty to one count of mail fraud and one count of tax evasion. He also awaits sentencing.

This matter has been investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Postal Inspection Service, and Internal Revenue Service – Criminal Investigation Division, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Sarah P. Karwan.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a nine-count indictment charging URMILA SRI THAKUR, also known as Urmila Buddhu-Thakur and Indro Buddhu-Thakur, 72, of Wethersfield, with conspiracy, mail fraud and money laundering offenses related to a fraudulent debt elimination scheme.

The indictment was returned on February 15, 2017. THAKUR appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges, and was released on a $250,000 bond.

According to court documents, from 2009 to June 2012, THAKUR, her former husband, Deowraj “Deo” Buddhu and their daughter, Sunita Buddhu, sold a debt elimination “program” to vulnerable individuals through various businesses, including Paradise Consulting Service, Hema, Inc., and Secured Redemption. In exchange for substantial fees, Deo Buddhu told victims about a little-known government fund that could be used to pay off their mortgages and other debts. In fact, no such fund exists. Buddhu instructed his victims to stop making payments on their mortgages, credit cards and other debts, and to stop paying their property taxes. He also provided his victims with fictitious promissory notes, which he called “bonds,” as well as other frivolous documentation, and advised his victims to use them to pay their debts.

The indictment alleges that THAKUR participated in the scheme by signing documents provided to victims as a witness, taking money from victims in exchange for their participation in the purported program, and managing payroll operations for the various businesses used for the purpose of selling and attempting to sell the program to the victims.

The indictment further alleges that, on June 12, 2012, the day after Deo Buddhu’s arrest, THAKUR withdrew $75,000 from a certificate of deposit account that contained funds from the scheme. THAKUR also obtained several cashier’s checks, including one for $50,000 made payable to THAKUR, which she thereafter negotiated using accounts in the name of SDK SYS Solutions and TRK Consulting Services.

The indictment charges THAKUR with one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud and seven counts of money laundering. If convicted, she faces a maximum term of imprisonment of 20 years for the conspiracy count, 20 years for the mail fraud count and 10 years on each count of money laundering.

Deo Buddhu and Sunita Buddhu were previously convicted in Hartford federal court.

As to THAKUR, U.S. Attorney Daly 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 Internal Revenue Service – Criminal Investigation Division and the U.S. Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Liam Brennan.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL BELLOFIORE, M.D., 56, of Trumbull, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to two years of probation for illegally prescribing oxycodone. Judge Thompson also ordered BELLOFIORE to perform 200 hours of community service, and prohibited him from writing prescriptions for controlled substances until October 13, 2017.

According to court documents and statements made in court, BELLOFIORE is a physician who practiced out of an office in Fairfield. Two of BELLOFIORE’s longtime patients were a married couple who lived in Connecticut until approximately 2011, when they relocated to Florida.

BELLOFIORE knew that, prior to moving to Florida, the couple had unlawfully obtained forged prescriptions for opioid medications from BELLOFIORE’s former medical assistant and, as a result, he should have been aware of the possibility that the couple was abusing or diverting their medications.

After moving to Florida, the couple traveled to Connecticut approximately twice per year, during which visits they scheduled medical appointments with BELLOFIORE. At the conclusion of each appointment, BELLOFIORE provided the couple with approximately six months of predated prescriptions, including prescriptions for Oxycodone, to last until their next appointment.

At times, the couple was unable to travel to Connecticut to see BELLOFIORE and obtain their prescriptions in person, in which case BELLOFIORE left the predated prescriptions for a friend or relative of the couple to pick up from BELLOFIORE’s office. It was BELLOFIORE’s understanding that the friend or relative would fill the prescriptions each month at a pharmacy in Connecticut and mail the medications to the couple in Florida.

In approximately February 2016, BELLOFIORE provided a stack of prescriptions to a friend of the married couple. The prescriptions, which were improperly dated to make it appear that they were issued at monthly intervals after February 2016, authorized the couple to receive thousands of pills of oxycodone and Percocet, a medication containing oxycodone. BELLOFIORE also failed to include on the prescriptions the couple’s address in Florida, which might have alerted a pharmacist filling the prescriptions in Connecticut to the possibility that the medications were being abused or diverted.

The couple subsequently diverted a significant amount of their medications for profit by arranging through a middleman for street-level resale of the pills in and around Waterbury.

The Controlled Substances Act prohibits physicians from dispensing any Schedule II controlled substance, including oxycodone, without a valid written prescription. The prescription must be “dated as of, and signed on, the day when issued” and “bear the full name and address of the patient.” A practitioner also may not issue multiple prescriptions at any single time authorizing a patient to receive more than a 90-day supply of a Schedule II controlled substance.

On October 13, 2016, BELLOFIORE pleaded guilty to one count of issuing unlawful prescriptions for oxycodone. He has been prohibited from writing prescriptions for controlled substances since that time.

This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONALD WEAVER, 38, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for distributing 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 March 11, 2016, Newtown Police and emergency medical personnel responded to a residence in Newtown on the report of a 30-year-old female who was in cardiac arrest. The victim was transported to the hospital where she subsequently died. Medical records and witness interviews revealed that the victim had a history of substance abuse, and the family of the victim turned over to law enforcement several wax folds of heroin, several empty folds and other drug paraphernalia.

The investigation revealed that the victim purchased heroin and other drugs from at least two sources in the days leading up to her death. One of the sources worked as a “runner” who conducted drug transactions for WEAVER.

Between June and August 2016, law enforcement made four controlled purchases of heroin from WEAVER.

WEAVER was arrested on August 9, 2016. On October 5, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.

As part of his sentence, WEAVER was ordered to forfeit a 2006 Infiniti M35, a 2007 Lexus ES350, and $1,956 in cash that was seized from him at the time of his arrest.

This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Newtown, Waterbury and Torrington Police Departments. The Task Force includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.

The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SYDNEY JACKSON, also known as “Fatz,” 34, of New London, Conn. and Queens, N.Y., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.

This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that, between 2013 and 2015, JACKSON and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by JACKSON in Connecticut, and the drugs were distributed through a network of dealers in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.

On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging JACKSON and 12 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.

During the course of the investigation, which included numerous controlled purchases of narcotics, extensive surveillance and the execution of 11 state search warrants, investigators seized approximately 1.3 kilograms of cocaine, one kilogram of crack cocaine, 416 grams of heroin, five firearms and $53,500 in cash.

JACKSON was arrested on June 23, 2015. On October 27, 2016, he pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”).

This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.

The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.

Deirdre M. Daly, United States Attorney for the District of Connecticut, DA YING, 56, of Beijing, China, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to engaging in a pattern of financial transactions to evade reporting requirements.

According to court documents and statements made in court, between April 2011 and March 2012, while he was a resident of Farmington, Conn., YING structured or caused to be structured 50 cash deposits in amounts less than $10,000.01 into his and his wife’s six accounts at four banks in Connecticut. The cash deposits, which totaled $464,400, were frequently made on the same day at different banks or on sequential days at the same or different banks. YING knew that banks were required to issue a report for a currency transaction in excess of $10,000, and his structuring activity was intended to evade the transaction reporting requirements.

Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000.01 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.

Judge Underhill scheduled sentencing for May 11, 2017, at which time YING faces a maximum term of imprisonment of 10 years and a fine of up to $500,000. YING was released pending sentencing.

As part of the resolution of this case, YING agreed to the civil forfeiture of $175,938 of the money he structured in Connecticut. He also agreed to pay the Internal Revenue Service $113,195 in unpaid federal taxes, plus penalties and interest for 2009, 2010 and 2011.

This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division and Homeland Security Investigations, with the assistance of the Hartford and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LEONARD SIKORSKI, 61, of New Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 12 months of imprisonment, followed by one year of supervised release, for possessing a shotgun with an obliterated serial number.

According to court documents and statements made in court, in September 2015, SIKORSKI transported three rifles, two shotguns and 1,561 live rounds of ammunition to a pair of storage lockers he rented in Danbury. On October 22, 2015, SIKORSKI admitted to investigating agents that he had placed several firearms in those storage lockers, and gave the agents consent to search and seize the items. One of the items, a 12 gauge Remington shotgun, had an obliterated serial number.

SIKORSKI agreed to forfeit and abandon the firearms and ammunition seized from his storage lockers based on federal laws barring unlawful users of controlled substances from possessing firearms. SIKORSKI also agreed to surrender to the FBI five additional handguns and two additional rifles seized by the Naugatuck and New Milford police during separate car stops of SIKORSKI.

On October 18, 2016, SIKORSKI pleaded guilty to one count of possession of a firearm bearing an obliterated serial number.

SIKORSKI is currently in state custody serving a sentence for illegally possessing explosives. Judge Arterton ordered SIKORSKI’s federal sentence to run concurrently with his state sentence, which is estimated to conclude in April 2018.

This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police and New Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Henry Kopel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALDRIC BORDEAUX, 29, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 180 months of imprisonment, followed by five years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, on October 28, 2014, law enforcement received information that a vehicle contained a firearm. Officers attempted to stop the vehicle but it sped away. The car was then located, abandoned, in a driveway on West Elm Street in New Haven. While officers were still on the scene, BORDEAUX called police to report that his car had been stolen. The next day, police received report a report that an individual, who was subsequently identified as BORDEAUX, was in the backyards of homes in the area of West Elm Street. Later, officers located in the rear yard of an address on West Elm Street, a short distance away from the address where the car was abandoned, a firearm magazine loaded with 11 rounds of ammunition.

Officers subsequently located a nine millimeter semi-automatic pistol hidden in the ceiling in the laundry room of BORDEAUX’s residence. The firearm was missing a magazine. Hidden with the pistol were various items of clothing that security cameras revealed that BORDEAUX had been wearing earlier that day. The magazine found on the West Elm Street property fit the firearm.

Prior to October 2014, BORDEAUX had sustained several felony convictions, including three convictions for robbery in the first degree.

BORDEAUX has been detained since his arrest on October 29, 2014. On January 6, 2016, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

BORDEAUX was sentenced pursuant to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses. A defendant who qualifies as an Armed Career Criminal faces a minimum term of imprisonment of 15 years and a maximum term of life.

The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Jennifer Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KEITH YOUNG, also known as “Capo,” “Bapo” and “Poncho,” 27, of Hamden. pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to federal racketeering and money laundering offenses, and admitted that he participated in two murders in 2011

This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, members and associates of the RSGB, transported crack and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.

According to court documents and statements made in court, YOUNG was a member and leader of the RSGB. On June 24, 2011, YOUNG was present when a RSGB member shot and killed Donell Allick in New Haven, and, on September 19, 2011, YOUNG was present when another RSGB member shot and killed Darrick Cooper in Hamden.

YOUNG also participated in the gang-related trafficking of crack cocaine in Maine, and the transferring drug proceeds from Maine to Connecticut by using Western Union.

“The Red Side Guerilla Brims wreaked havoc from New Haven to Bangor, Maine,” said U.S. Attorney Daly. “RSGB members were not only responsible for multiple murders and non-fatal shootings locally, they trafficked drugs and firearms from one end of New England to the other. I thank our law enforcement partners who put this gang out of business, particularly the ATF, New Haven Police Department and Hamden Police Department, for their tireless dedication during this long-term and ongoing investigation. They are providing justice for the many victims of this brutal gang, and making New Haven a safer and better place to live.”

“ATF’s mission is to combat violent criminals and criminal organizations,” said Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division. “With today’s guilty plea, we have succeeded in taking a very violent gang member off the streets of our communities.”

“The outcome of this case is an example of what happens when agencies cooperate,” said Assistant Chief Achilles Generoso of the New Haven Police Department. “The collaboration between the NHPD, ATF, U.S. Attorney’s Office and State’s Attorney’s Office, once again resulted in dangerous people – involved in gun violence in New Haven and our neighboring communities – being taken off our streets.”

YOUNG pleaded guilty to one count of engaging in a pattern of racketeering activity, which, because it involves the commission of murder, carries a maximum penalty of life in prison. He also pleaded guilty to one count of money laundering, which carries a maximum term of imprisonment of 20 years.

YOUNG has been detained since his arrest on September 30, 2015.

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROY ISIAH JACKSON, also known as “I”, 22, of New Haven, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to federal racketeering and firearm offenses stemming from his participation in a violent New Haven-based street gang.

This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, members and associates of the RSGB, transported crack and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.

According to court documents and statements made in court, JACKSON was a member of the RSGB. In pleading guilty, he admitted that, on March 19, 2012, he was involved in an exchange of gunfire with a rival gang on Genesee Street in New Haven. Although approximately 30 shots were fired during the incident, no one was injured.

In addition, on May 30, 2012, JACKSON and others, armed with firearms, committed a home invasion robbery of a residence located on Putnam Street in New Haven, during which they threatened the residents and removed a safe containing an amount of cash from the home.

JACKSON also participated in the trafficking of crack cocaine in Connecticut and Maine from 2011 until approximately June 2012.

JACKSON pleaded guilty to one count of engaging in a pattern of racketeering activity, which carries a maximum term of imprisonment of 20 years, one count of attempted assault with a dangerous weapon in aid of racketeering, which carries a maximum term of imprisonment of three years, and one count of carrying a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least five years and a maximum term of imprisonment of life.

Chief Judge Hall scheduled sentencing for May 11, 2017.

JACKSON is detained.

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COLLIN FLETCHER, 52, last residing in Bridgeport, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of conspiracy to distribute, and to possess with intent to distribute, MDA and MDMA.

MDA (Methylenedioxyamphetamine) is an analogue of MDMA (Methylenedioxymethamphetamine), and they are both commonly known as “ecstasy”.

According to court documents and statements made in court, FLETCHER conspired with others to sell ecstasy to customers in Connecticut, New York and elsewhere. On October 27, 2016, and again on November 1, 2016, investigators made two controlled purchases of ecstasy from FLETCHER.

FLETCHER was arrested on November 18, 2016, after he attempted to sell approximately 10,000 capsules of ecstasy to an undercover officer. The capsules had a combined weight of approximately 923 grams of MDA.

Chief Judge Hall scheduled sentencing for May 12, 2017, at which time FLETCHER faces a maximum term of imprisonment of 20 years. FLETCHER, a citizen of Jamaica, has been detained since his arrest.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found ANDREW ORECKINTO, 52, of Matawan, New Jersey, guilty of stealing more than 8,000 cartons of cigarettes from a Wethersfield warehouse in March 2011.

The trial before U.S. District Judge Jeffrey A. Meyer began on February 6 and the jury returned its verdict this morning.

According to the evidence introduced during the trial, at approximately 7:00 a.m. on March 20, 2011, Wethersfield Police responded to an open garage door complaint at New Britain Candy, a business and warehouse located at 24 Maple Street in Wethersfield.  The business distributes items to convenience stores in Connecticut and neighboring states.  A glue-like substance had been forced into the front door lock causing it to be inoperable, exterior surveillance camera wires and a phone line had been cut, and alarm panels and speakers had been disabled.  Approximately 8,012 cartons of cigarettes, as well as a pallet jack, were missing from the warehouse.  The stolen cigarettes had a wholesale value of approximately $300,000 and a retail value of approximately $500,000.

One individual, subsequently identified as ORECKINTO, was seen on video surveillance footage.  He was dressed in a black hooded sweatshirt, dark pants, black gloves, a black face mask, and wore a headband light around his head.

Prior to the burglary, ORECKINTO had stolen a white box truck from a business in Hartford.  The day after the burglary, the truck was found near a commercial construction site in Stamford.  The stolen pallet jack was recovered from the cargo area of the truck.

The investigation included extensive analysis of prepaid cellphones and cell tower information.  Examination of the call history of ORECKINTO’s prepaid phone ultimately led investigators to several other prepaid phones that had been used in multiple commercial burglaries in Connecticut, New York, New Jersey and Pennsylvania.  ORECKINTO previously was convicted of two of these other burglaries, including a burglary that occurred at a Waldbaum’s Supermarket in Rockville Centre, N.Y., overnight on December 31, 2010 and January 1, 2011, and a commercial warehouse burglary in Florham Park, N.J., on April 28, 2008, during which $100,000 worth of copper was stolen.  ORECKINTO was sentenced to a term of imprisonment for both of these burglaries.

At the time of ORECKINTO’s arrest for the New Jersey burglary, a search of his car revealed a list of licensed cigarette distributors in the State of Connecticut that had been printed from the Connecticut Department of Revenue Services web site.  The list, which included the New Britain Candy warehouse in Wethersfield, also contained several handwritten notations next to many of the businesses, at least three of which also have been burglarized.

The jury found ORECKINTO guilty of one count of theft from an interstate shipment, an offense that carries a maximum term of imprisonment of 10 years. Judge Meyer scheduled sentencing for May 8, 2017.

This investigation has been conducted by the Wethersfield Police Department and the Federal Bureau of Investigation, with the assistance of the Nassau County Police Department and the Florham Park (N.J.) Police Department.  The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JACQUES FLEURIJEUNE, 27, also known as “Magic,” last residing in New London, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to commit mail and wire fraud stemming from his involvement in an insurance fraud scheme.

According to court documents and statements made in court, between April 2011 and February 2014, FLEURIJEUNE and others conspired to stage approximately 50 car crashes in southeastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.

In pleading guilty, FLEURIJEUNE admitted his personal involvement in one staged crash that occurred on October 22, 2013, in Norwich. After another scheme participant crashed the vehicle, FLEURIJEUNE replaced the other participant in the driver’s seat and falsely reported to responding law enforcement officers that FLEURIJEUNE had been driving the car at the time of the crash, and that the crash occurred because he swerved into a tree to avoid hitting a deer in the road.

After the crash, FLEURIJEUNE and his co-conspirators submitted fraudulent insurance claims that misrepresented the conditions that caused the crash, who was driving the vehicle at the time of the crash, and whether and to what extent the occupants of the vehicle suffered injuries as a result of the crash. As a result, FLEURIJEUNE and others collected a total of $31,334.52 from the insurer.

Judge Meyer scheduled sentencing for May 10, 2017, at which time FLEURIJEUNE faces a maximum term of imprisonment of 20 years. FLEURIJEUNE, a citizen of Haiti, is detained.

This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARRIE CAESAR, 46, of New Britain, pleaded guilty today in New Haven federal court to embezzling funds from Webster Bank Corporation.

According to court documents and statements made in court, CAESAR was a long-time employee of Webster Bank where she served in a variety of roles, including bank teller, account manager and, most recently, as manager of the Avon branch office. Between 2003 and 2016, CAESAR withdrew at least $535,600 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, used the embezzled funds for her own purposes, and took steps to conceal her misconduct.

CAESAR targeted primarily six customers, all of whom were at least 79 years old and with whom she had developed a relationship as an account manager.

CAESAR pleaded guilty to one count of theft, embezzlement and misapplication by a bank officer and employee, an offense that carries a maximum term of imprisonment of 30 years. She is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on May 8, 2017.

CAESAR is released on a $150,000 bond.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES BARNES, 35, of Stamford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 63 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded firearm.

According to court documents and statements made in court, on December 29, 2015, Stamford Police stopped a car BARNES was driving. A subsequent search of the vehicle revealed a Berretta 9 millimeter pistol loaded with 12 rounds of ammunition, which was found in the glove box. The search also revealed 16 bags of marijuana packaged for sale.

Prior to December 2015, BARNES had sustained a felony conviction for possession of marijuana with intent to sell, and two felony convictions for second degree assault. 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.

BARNES has been detained since December 29, 2015. On November 17, 2016, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 8, 2017, a federal grand jury in New Haven returned an indictment charging JEFFREY PEARLMAN, 49, of Edgewood, N.J., with engaging in a kickback scheme that defrauded federal healthcare programs.

According to the indictment, from approximately September 2012 until December 2015, PEARLMAN was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. The company first hired PEARLMAN as a sales representative and subsequently promoted him to the position of District Sales Manager (DSM). As a DSM, PEARLMAN was responsible for managing the company’s sales representatives who called on licensed healthcare providers in Connecticut, New York, New Jersey and Rhode Island.

The indictment alleges that PEARLMAN and the sales representatives he managed induced certain physicians, advanced practice registered nurses (APRNs) and physicians’ assistants to prescribe Subsys by paying them to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged, with PEARLMAN’s knowledge, so as to make it appear that the programs had an appropriate audience of healthcare professionals.

The indictment alleges that Insys Therapeutics paid one Connecticut healthcare provider who participated in these sham Speaker Programs a total of approximately $83,500 in illegal kickbacks in order to induce the provider to prescribe the company’s fentanyl spray over similar medications. PEARLMAN authorized these payments.

It is alleged that PEARLMAN personally profited from this scheme through inflated quarterly bonuses he received that were based in large part on the sales results of the sales representatives he managed.

It is further alleged that this illegal kickback scheme caused millions of dollars of losses to federal healthcare programs.

The indictment charges PEARLMAN with one count of conspiracy to violate the anti-kickback law, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000.

PEARLMAN was arrested a criminal complaint on September 29, 2016. He is released on a $200,000 bond.

U.S. Attorney Daly 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 ongoing investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Richard M. Molot.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 8, 2017, TREVOR MURPHY, also known as “Snookie,” 28, of West Haven, pleaded guilty before Chief U.S. District Judge Janet C. Hall in New Haven to federal robbery and firearm charges related to the murder of Joseph Zargo on December 23, 2011.

This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. MURPHY was a member of RSGB.

According to court documents and statements made in court, MURPHY ordered a quantity of ecstasy from Joseph Zargo as part of a plan to rob him of drugs and cash. Just after midnight on December 23, 2011, MURPHY met Zargo on Houston Street in New Haven. After MURPHY took ecstasy pills from Zargo, he pulled out a firearm. When Zargo reached into his pocket, MURPHY shot Zargo once in the chest. Zargo died later that morning.

MURPHY pleaded guilty to one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of using a firearm during and in relation to a crime of violence, an offense that carries a consecutive term of imprisonment of at least 10 years and a maximum term of imprisonment of life.

Under the terms of a binding plea agreement, if accepted by the court, the parties have agreed that a term of imprisonment of 360 months is an appropriate sentence in this case.

Chief Judge Hall scheduled sentencing for May 3, 2017.

MURPHY has been detained since his arrest on September 30, 2015.

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENZO MALCOLM, 28, of Groton, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 66 months of imprisonment, followed by three years of supervised release, for gun and drug offenses.

According to court documents and statements made in court, on March 1, 2016, MALCOLM was arrested in Groton after a search of his person revealed five individually-wrapped packages of cocaine, one baggie containing crack cocaine and two individually-wrapped baggies of heroin. In addition, a search of a vehicle in which MALCOLM had been a passenger revealed a gym bag that contained a .22 caliber Sig Sauer pistol and seven rounds of ammunition, and a small backpack that contained more than 300 grams of heroin, marijuana and drug paraphernalia.

MALCOLM has been detained since his arrest. On November 9, 2016, he pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.

This investigation has been conducted by the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MITCHELL ANDERSON, 52, of Avon, pleaded guilty today before U.S. District Court Judge Stefan R. Underhill in Bridgeport to fraud and money laundering charges stemming from a scheme involving the redevelopment of Dillon Stadium in Hartford and a plan to bring a professional soccer team to the city.

According to court documents and statements made in court, in September 2014, the City of Hartford entered into a professional services agreement with ANDERSON’s company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, ANDERSON joined with a business partner who agreed to be the majority owner of the professional soccer team. ANDERSON and his business partner represented to various city officials that PSMG and the partner’s consulting company had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team.

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

ANDERSON pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of conducting illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years. Judge Underhill scheduled sentencing for May 1, 2017.

ANDERSON has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.

ANDERSON was arrested on June 23, 2016, as is released on a $100,000 bond.

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three men have pleaded guilty in Hartford federal court to charges related to the armed robberies of the Allingtown Post Office in West Haven and the Wells Fargo Bank in Hamden on April 21, 2016.

On February 2, MALCOLM HAYNES, also known as “Black,” 26, of New Haven, pleaded guilty to one count of armed robbery of a postal employee and one count of armed bank robbery. On January 25, DERRICK WHITE, also known as “Fly,” 52, of Hamden, pleaded guilty to one count of armed bank robbery. On January 30, HOWARD BOOKERT, 19, of Hamden, pleaded guilty to one count of armed robbery of a postal employee.

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

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

WHITE and BOOKERT were apprehended in New Haven on April 21, 2016. HAYNES was arrested on May 23, 2016.

HAYNES, WHITE and BOOKERT, who have been detained since their arrests, are scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 3, April 19 and May 4, respectively.

Each of the charges carries a maximum term of imprisonment of 25 years.

The fourth male was charged in state court and his case remains pending.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROHAN A. JAMES-DENNIE, JR., 22, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.

According to court documents and statements made in court, on November 1, 2015, a Connecticut State Trooper stopped a vehicle that JAMES-DENNIE was operating erratically in Essex. A subsequent search of the vehicle revealed a .380 caliber handgun with a hollow point bullet in the magazine of the weapon, approximately one-half kilogram of marijuana and more than $3,400 in cash. The firearm had been reported stolen during a residential burglary in 2013.

On January 12, 2016, West Haven Police stopped a vehicle that JAMES-DENNIE was operating. A search of the vehicle and JAMES-DENNIE’s person revealed a .22 caliber handgun loaded with six rounds of ammunition, more than 200 grams of marijuana and nearly $5,000 in cash. The firearm’s serial number was partially obliterated.

JAMES-DENNIE was arrested on state charges in both of these instances and was released on bond.

On July 7, 2016, the Connecticut Intelligence Center (CTIC) issued a statewide “Officer Safety” notification regarding JAMES-DENNIE after a post on JAMES-DENNIE’s Facebook page included “We need to just start shooting cops RS that’s the only way…100100.”

JAMES-DENNIE was arrested the following day in East Haven on a federal criminal complaint charging him firearm and drug offenses. At the time of his arrest, he had $3,500 in cash and three grams of marijuana in his pocket. A search of an apartment connected to JAMES-DENNIE revealed an additional 17 grams of marijuana and a laser attachment for a gun.

JAMES-DENNIE has been detained since his federal arrest. On October 11, 2016, he pleaded guilty to one count of possession of a firearm by an unlawful user of a controlled substance.

This matter was investigated by the FBI’s New Haven Safe Streets Task Force, Connecticut State Police, West Haven Police Department and East Haven Police Department. The FBI Task Force includes participants from the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction.

U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial District of Middlesex and the Judicial District of Ansonia/Milford.

This case was prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY G. SCIARRA, 53, of Wethersfield, formerly of Marlborough, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of wire fraud stemming from an investment scheme that defrauded individuals and couples of more than $874,000.

According to court documents and statements made in court, from 2001 until May 2012, SCIARRA operated AGS Financial, through which he offered insurance, securities and other financial products. In approximately May 2012, the Connecticut Department of Insurance revoked SCIARRA’s insurance license.

Between approximately 2007 and July 2015, SCIARRA held himself out as a bona fide insurance agent and financial advisor when, in fact, he was not. Through AGS Financial, and later through an entity he described as “Westport Enterprises,” SCIARRA solicited investments from various victim-investors with promises of high annual investment returns ranging from 4 percent to 12 percent or more. SCIARRA falsely represented to investors that he would invest their funds in a bond fund and/or a cigarette distribution business. Instead of investing any of the invested money as promised, SCIARRA diverted funds for his personal use, including to pay for restaurant meals and department store purchases, and to pay loans and other personal bills. The investigation revealed that SCIARRA also made large cash withdrawals from ATMs and at Foxwoods Casino. SCIARRA also used some of the funds to make “interest” payments to other victim-investors.

During the scheme, SCIARRA made false statements to certain victim-investors, both in person and by e-mail, in an attempt to explain the various delays in the purported interest payments. In addition to telling victim-investors that their funds had been invested as represented, SCIARRA sought to prevent the discovery of the scheme by issuing partial payments to the victim-investors as a partial return of the principal and monies that were then due. Eventually, these payments stopped and the scheme was discovered.

Through this scheme, SCIARRA defrauded at least 12 victim-investors of approximately $874,000.

Judge Shea scheduled sentencing for April 26, 2017, at which time SCIARRA faces a maximum term of imprisonment of 20 years. He is released on a $100,000 bond pending sentencing.

This matter is being investigated by the Federal Bureau of Investigation, with the Assistance of the Connecticut Department of Banking, Securities Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the investigation of two drug overdose deaths in May 2016 has resulted in federal heroin distribution charges against NESTOR SANTANA, also known as “Beans,” 29, of New London, and JAMES BUTLER, 23, of Montville.

The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

SANTANA and BUTLER were arrested today on federal criminal complaints charging each with possession with the intent to distribute, and distribution of, heroin. They appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and were ordered detained. The charge carries a maximum term of imprisonment of 20 years.

As alleged in court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.

The investigation revealed that Ramon Gomez, also known as “B.I.,” who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, Gomez sold a quantity of heroin to another individual who then distributed the heroin to the victim. It is alleged that SANTANA supplied Gomez with the heroin that caused the death of the victim.

On May 31, 2016, members of the Montville Police Department responded to an apartment on Route 32 for an “untimely death” investigation. Upon arrival, officers found a deceased 34-year-old female lying face down on the bathroom floor.

The Connecticut’s Office of the Chief Medical Examiner subsequently determined the cause of the 34-year-old female’s death to be “Acute Ethanol and Fentanyl Intoxication.”

It is alleged that the victim was supplied with heroin/fentanyl by BUTLER, who in turn was supplied by Gomez, who in turn was supplied by SANTANA.

In August and September 2016, investigators made controlled purchases of heroin from SANTANA. SANTANA was arrested on state charges on September 29, 2016. A search of his residence at the time of his arrest revealed an additional quantity of heroin and items used to process and package narcotics.

Gomez, 41, of Uncasville, has pleaded guilty to federal sex trafficking of a minor and heroin distribution offenses. He awaits sentencing.

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

This investigation is being conducted by the Drug Enforcement Administration, Connecticut State Police, Groton Police Department, Montville Police Department, New London Police Department, Statewide Narcotics Task Force – East, and the Regional Community Enhancement Task Force.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID GIL-GRANDE, 29, of Manchester, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 70 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that GIL-GRANDE received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to individuals who converted much of it into crack cocaine, and distributed both forms of the drug in the area of Barbour Street in Hartford.

GIL-GRANDE secreted cash generated from his drug trafficking in resealed coffee cans and then shipped the cans back to Puerto Rico. He also drove large amounts of cash to New York City where it would be sent to Puerto Rico. On January 6, 2016, GIL-GRANDE was stopped as he drove to New York. A subsequent search of his vehicle revealed approximately $92,000.

Twenty individuals were charged as a result of the investigation.

GIL-GRANDE has been detained since his arrest on January 21, 2016. On November 8, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.

This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad and the Drug Enforcement Administration are providing valuable assistance to the investigation.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that TODD VERNON, 42, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. VERNON also was ordered to pay a $50,000 fine.

According to court documents and statements made in court, Raul Chavez headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization had been supplying multiple kilograms of cocaine to VERNON since approximately 2004, and Tyshawn Welborn, of Bloomfield, since approximately 2010. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year. VERNON and Welborn distributed the drug through a network of individuals.

In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.

The investigation revealed that this cocaine shipment was destined for both VERNON, who had prepaid for approximately 13 kilograms of cocaine, and Welborn.

On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Raul Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Raul Chavez and his associates.

Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.

After word reached Raul Chavez’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.

VERNON was arrested on August 26, 2015. On September 7, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.

VERNON, a citizen of Canada, faces deportation proceedings when he is released from prison.

Raul Chavez, Christopher Chavez, Duron and Welborn also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment; on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment; on December 21, 2016, Welborn, also known as “Black,” was sentenced to 84 months of imprisonment and a $200,000 fine, and on January 11, 2017, Raul Chavez was sentenced to 144 months of imprisonment and a $250,000 fine.

This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.

The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Amy C. Brown.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT TAYLOR, 47, of Shelton, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of bank robbery and admitted that he robbed four branches of Chase Bank last year.

According to court documents and statements made in court, TAYLOR robbed the Chase Bank at 184 Main Street in Westport on June 2, 2016; the Chase Bank at 1561 Boston Post Road in Milford on June 24, 2016; the Chase Bank at 50 Washington Street in Norwalk on July 6, 2016, and the Chase Bank at 1855 Main Street in Stratford on July 13, 2016. During each of the robberies, TAYLOR handed a teller a note demanding cash, and told the teller that he had a gun.

TAYLOR stole a total of approximately $23,300 during the first three robberies, and $1,000 during the July 13 robbery. He was arrested at the Stratford train station shortly after the July 13 robbery in possession of $998 in cash and 33 folds of heroin.

TAYLOR is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 3, 2017, at which time he faces a maximum term of imprisonment of 20 years. The parties have recommended a sentence of 188 months of imprisonment.

TAYLOR has been detained since his arrest.

This investigation has been conducted by the Federal Bureau of Investigation and the Westport, Milford, Norwalk and Stratford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.

U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial Districts of Ansonia/Milford, Fairfield and Stamford/Norwalk.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on January 27, 2017, EDUARDO ZAYAS, also known as “Za,” 38, of East Hartford, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 65 months of imprisonment, followed by three years of supervised release, for possessing crack cocaine and a firearm.

According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.

On May 15, 2015, Hartford Police arrested ZAYAS after he traveled to a parking lot to meet his drug supplier who was in possession of approximately 320 grams of crack. A subsequent search of an apartment on New Britain Avenue in Hartford that was connected to ZAYAS revealed a .25 caliber handgun, a magazine with four live .25 caliber rounds, approximately 52 grams of crack, items used to process and package narcotics, and $4,120 in cash.

ZAYAS has been detained since his federal arrest on June 15, 2015. On May 5, 2016, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”).

Judge Bolden also ordered ZAYAS to forfeit a 2005 Acura RL, a 2002 GMC Denali, and the cash that was seized at the time of his arrest in May 2015.

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.

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

This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.

Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.

New Haven - U.S. Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office for the District of Connecticut collected $792,906,133.31 in criminal and civil actions in Fiscal Year 2016. Of this amount, $783,664,236.82 was collected in criminal actions and $9,241,896.49 was collected in civil actions.

This year’s recovery is particularly large as a result of a single criminal fine in the amount of $772,290,000 paid by Alstom S.A., a French power and transportation company that has a U.S. subsidiary with headquarters in Connecticut. This Office in collaboration with the Criminal Division of the Department of Justice prosecuted Alstom for violations of the Foreign Corrupt Practices Act.

The Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. This amount in collections represents more than five times the approximately $2.93 billion of the Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“This past fiscal year, our Office’s dedicated attorneys and staff helped to recover over $792 million,” said U.S. Attorney Daly. “We are gratified that these funds are returned directly to victims of crime, provide needed services for these victims and fund ongoing federal, state and local law enforcement efforts. One of our primary missions is to seek justice for victims, remove ill-gotten gains from wrongdoers and protect the integrity of important government programs.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

In addition, the U.S. Attorney’s office in Connecticut, working with partner agencies and divisions, collected $5,375,890 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.

For more information about the U.S. Attorney’s Office for the District of Connecticut, please visit www.justice.gov/ct.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 42, a citizen of Mexico recently residing in Norwalk, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of illegal reentry of a removed alien.

According to court documents and statements made in court, SILVA-GARCIA was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, SILVA-GARCIA was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions, SILVA-GARCIA was removed to Mexico by foot.

In August 2009, SILVA-GARCIA was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, SILVA-GARCIA was again removed to Mexico.

SILVA-GARCIA illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.

SILVA-GARCIA has been detained in ICE custody since October 2016.

Judge Meyer scheduled sentencing for April 25, 2017, at which time SILVA-GARCIA faces a maximum term of imprisonment of 10 years.

This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal jury in New Haven has found JESSE C. LITVAK, 42, of Boca Raton, Fla., guilty of one count of securities fraud stemming from trading in residential mortgage-backed securities (RMBS).

The jury returned a verdict of guilty on one count of securities fraud, and a verdict of not guilty on nine counts of security fraud. The trial before Chief U.S. District Judge Janet C. Hall began on January 5 and the jury returned its verdict this morning.

“Once again, a jury of his peers has rejected Mr. Litvak’s claims that he engaged in acceptable sales practices, and determined that his lies were, in fact, criminal behavior,” said U.S. Attorney Daly. “I thank SIGTARP and the FBI for their outstanding work on this investigation and related cases. Our criminal investigation of individuals and institutions involved in fraudulent RMBS trading activities remains active and ongoing. We are confident that these prosecutions have acted as a forceful disincentive to market participants tempted to commit securities fraud.”

“The jury’s verdict confirms that Jeffries trader Jesse Litvak’s sales tactics are not merely distasteful negotiating practices but a crime,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “SIGTARP is sworn to protect taxpayer dollars and the jury found today that Litvak defrauded a customer trading in a TARP program. SIGTARP, partnering with U.S. Attorney Deirdre Daly and her dedicated team, uncovered that this Wall Street trader lied to customers, all to secretly profit at the expense of customers trading with taxpayer dollars. SIGTARP and U.S. Attorney Daly’s office uncovered the full extent of Litvak’s crime by looking deal by deal. In this mortgage backed securities market that has no transparency on current market prices, everyone should look at their own conduct and above all, be honest in their dealings. After Litvak’s indictment, some broker dealers changed practices to prevent this type of fraud. Those who did not should do so now. SIGTARP and U.S. Attorney Daly stand united in vigilance against crime in this market.”

“Mr. Litvak’s jury trial conviction today is yet again evidence that justice prevails over greed, deceit and criminal behavior,” said FBI Special Agent in Charge Ferrick.

According to the evidence introduced during the trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used billions of dollars of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds.

LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked.

The jury found that LITVAK engaged in a scheme to defraud. As a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. In the count of conviction, LITVAK exploited this information by misrepresenting to his PPIP fund victim the price Jefferies paid for a RMBS bond in order to increase Jefferies’ profit on the trade.

Securities fraud carries a maximum term of imprisonment of 20 years.

Chief Judge Hall scheduled sentencing for April 21, 2017, at which time LITVAK faces a maximum term of imprisonment of 20 years.

LITVAK has been released on bond since his arrest on January 28, 2013.

On March 7, 2014, LITVAK was convicted after trial of 10 counts of securities fraud, one count of TARP fraud and three counts of making false statements to the government. LITVAK appealed his conviction and, on December 8, 2015, the U.S. Court of Appeals for the Second Circuit reversed the judgment of conviction as to the TARP fraud and making false statement charges, and remanded the matter for a new trial on the securities fraud charges.

The investigation of this matter revealed that members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it. Jefferies has cooperated with the federal criminal investigation and paid a total penalty of $25 million as part of a non-prosecution agreement with the government. The penalty included up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also addressed deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures included Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.

This matter has been investigated by SIGTARP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis, Heather Cherry and William Nardini.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS CARRILLO, 19, of Wethersfield, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of 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 16, 2016, Wethersfield Police and emergency medical personnel responded to a residence in Wethersfield and found an unresponsive 19-year-old female on a bed in a bedroom of the home. The victim was pronounced deceased at the scene. Investigators located a torn wax paper packet under the female’s body and another packet on the nightstand. Subsequent laboratory testing of the contents of the packets confirmed the presence of heroin.

The investigation revealed that earlier on July 16, 2016, the victim and a juvenile friend met with CARRILLO in the parking lot of a Wethersfield motel and purchased two bags of heroin from CARRILLO for 10 dollars.

CARRILLO was arrested on a federal criminal complaint on August 2, 2016.

CARRILLO is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on April 20, 2017, at which time he faces a maximum term of imprisonment of 20 years.

This matter is being investigated by the Drug Enforcement Administration and the Wethersfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jennifer P. Laraia and Michael E. Runowicz.