District of Connecticut

Yu Long, 38, a citizen of China and lawful permanent resident of the U.S., waived his right to be indicted and pleaded guilty today in New Haven federal court to charges related to his theft of numerous sensitive military program documents from United Technologies and transporting them to China.

The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Patricia M. Ferrick of the New Haven Division of the Federal Bureau of Investigation, Special Agent in Charge Matthew Etre of Homeland Security Investigations (HSI) in Boston, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, and Special Agent in Charge Danielle Angley of the U.S. Air Force Office of Special Investigations. 

“Long admitted to stealing and exploiting highly sensitive military technology and documents, knowing his theft would benefit China’s defense industry and deliberately contravene the embargo on U.S. Munitions List technology the United States has imposed on China,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and disrupting and prosecuting this kind of economic espionage is one of the National Security Division’s highest priorities.”

“In an effort to further his own career, this defendant stole an extraordinary amount of proprietary military program information from United Technologies and transported much of that stolen information to China,” said U.S. Attorney Deirdre M. Daly.  “His actions, which he knew would benefit China, not only violated his employment agreement and damaged the company, but have threatened our country's national security interests.  U.S. companies continue to be targeted by those who seek to steal intellectual property, trade secrets and advanced defense technology – whether through a computer hack or cyber intrusion, or through a rogue employee.  Working closely with our nation’s defense contractors, we will relentlessly investigate and prosecute those who steal, or attempt to steal, trade secrets and sensitive military information, whether for their own personal gain or for the benefit of foreign actors.”

“This case highlights the complexity in which the FBI and law enforcement are being challenged to keep the integrity of our industry intellectual property intact,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.  “Investigating criminal activity of this nature will continue to be a priority.”

“These sophisticated technologies are highly sought after by our adversaries,” said Special Agent in Charge Matthew Etre of HSI Boston.  “They were developed to give the United States and its allies a distinct military advantage, which is why HSI and our law enforcement partners will continue to aggressively target the individuals who steal the ideas of others and sell these items.”

“Today’s plea demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our federal law enforcement partners to identifying those who illegally export sensitive defense information to adversarial Foreign governments,” said Craig W. Rupert, Special Agent in Charge, DCIS, Northeast Field Office.  “DCIS will continue to safeguard sensitive technology and to shield America's investment in national defense by disrupting efforts of groups and individuals who try to illegally acquire our national security assets.”

“This case was enabled by the outstanding teamwork of the FBI, DCIS, HSI, AFOSI and the U.S. Attorney's office,” said Danielle Angley, Special Agent-in-Charge with the Air Force Office of Special Investigations.  “In addition, it demonstrates the focus of law enforcement agencies to protect our nation's critical resources.”

According to court documents and statements made in court, from approximately May 2008 to May 2014, Long worked as a Senior Engineer/Scientist at United Technologies Research Center (UTRC) in Connecticut. Long’s employment at UTRC included work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.

Beginning in 2013, Long expressed his intent to individuals outside UTRC to return to China to work on research projects at certain state-run universities in China using knowledge and materials he had acquired while employed at the UTRC. To that end, Long interacted with several state-run institutions in China, including the Chinese Academy of Science (CAS) and the Shenyang Institute of Automation (SIA), a state-run university in China affiliated with CAS.

During 2013 and 2014, Long was recruited by SIA and other state-run universities, during which he leveraged information that he had obtained while working at UTRC to seek employment in China, culminating in his travel to China in the possession of voluminous documents and data containing highly sensitive intellectual property, trade secrets and export controlled technology, which he had unlawfully stolen from UTRC.

In December 2013, after Long agreed in principle to join SIA, an SIA-CAS Director and an SIA-CAS Recruiter asked Long to provide documents from his work at UTRC and examples of projects on which he had worked to substantiate the claims Long made in his application, and interview with SIA.  Long agreed.

On Dec. 24, 2013, Long emailed several documents to the SIA-CAS Director, including a document that contained the cover page of an export controlled UTRC presentation on Distortion Modeling dated Sept. 30, 2011. 

While negotiating with SIA, Long also continued to explore other opportunities at other state-run institutions in China. In one email, Long stated: “I have made my mind to return to China, so have prepared a research plan based on my industry experience and current projects.” In the research plan, Long stated: “In the past five years, I have been working with Pratt Whitney, also other UTC business units, like UTAS (including Hamilton Sundstrand and Goodrich), Sikorsky, CCS (including Carrier and Fire & Security), and Otis. These unique working experiences have provided me a great starting point to perform R&D and further spin off business in China. I believe my efforts will help China to mature its own aircraft engines.”

On May 30, 2014, Long left UTRC. In June 2014, Long traveled to China and began working for SIA. Beginning in July 2014, digital evidence and forensic analysis indicated that Long brought with him and accessed in China a UTRC external hard drive that had been issued to him and that he unlawfully retained.

In July 2014, Long was listed as the project leader on a lengthy research plan for CAS involving fourteen other individuals.  The plan was replete with references to how the proposed research and development would benefit China. The plan stated: “The three major engine companies in the world, i.e. GE, Pratt & Whitney in the US and Rolls-Royce in the UK, are all using this technology. . . Our nation lacks the ability to process high performance components, such as airplane wings, tail hooks on carrier aircrafts, and blisks . . . Because of the technology embargo imposed by western developed countries, it is very difficult for us to obtain more advanced design and manufacturing technology . . . This research project will increase our independent ability, efficiency and quality in key component manufacturing.”

On or about Aug. 12, 2014, the Document on Distortion Modeling – the same document from which Long had sent the cover page to the SIA-CAS Director on Dec. 24, 2013 – was accessed on the external hard drive. Travel records and forensic analysis confirmed that both Long and the external hard drive were in China when this file was accessed.

On Aug. 19, 2014, Long returned to the U.S. from China through John F. Kennedy International Airport in New York. During a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, Long was found in the possession of a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application highlighted certain parts of Long’s work related to the F119 and F135 engines while at UTRC.

On or about Aug. 20, 2014, Long emailed an individual at a university in China, attaching an updated “achievement and future plan.” In the plan, Long discussed his work related to the F119 and F135 U.S. military fighter jet engines and stated that he also had knowledge of unpublished UTRC projects in which the U.S. Air Force had shown interest.

On Nov. 5, 2014, Long boarded a flight from Ithaca, New York to Newark Liberty International Airport in Newark, New Jersey, with a final destination of China. During Long’s layover in Newark, CBP officers inspected Long’s checked baggage and discovered that it contained sensitive, proprietary and export controlled documents from another defense contractor, Rolls Royce.

Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Pratt and Rolls Royce, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to restrictions on further dissemination. Rolls Royce reviewed the documents found in Long’s possession at Newark Liberty Airport and confirmed that it provided the documents to members of the consortium, which included Pratt. Rolls Royce further confirmed that Long was never an employee of Rolls Royce. A review of UTRC computer records indicated that Long had printed the documents while employed at UTRC. 

Long was arrested on a federal criminal complaint on Nov. 7, 2014. A review of Long’s digital media seized at the time of his arrest revealed voluminous files protected by the International Traffic in Arms Regulations and Export Administration Regulations, and voluminous files proprietary to various U.S. companies. In short, the investigation revealed that Long took his laptop and the UTRC external hard drive with him to China in 2014, at which time there was a substantial body of highly sensitive, proprietary and export controlled materials present on that digital media. UTRC has confirmed that the hard drive that Long unlawfully retained and accessed in China contained not only documents and data from projects on which Long worked while employed at the company, but also from projects on which he did not work to which he would have had access. 

Long pleaded guilty to one count of conspiracy to engage in the theft of trade secrets knowing that the offense would benefit a foreign government, foreign instrumentality or foreign agent, an offense that carries a maximum term of imprisonment of 15 years. He also pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act, an offense that carries a maximum term of imprisonment of 20 years. 

Long, who has been detained since his arrest, will be sentenced by U.S. District Judge Robert N. Chatigny in Hartford.  A sentencing date has not been scheduled.

This investigation is being led by the FBI in New Haven in coordination with Homeland Security Investigations in New Haven and Newark; the Defense Criminal Investigative Service in New Haven; the U.S. Air Force’s Office of Special Investigations in Boston, Massachusetts; and, the Department of Commerce’s Boston Office of Export Enforcement. U.S. Attorney Daly and Acting Assistant Attorney General McCord also thanked the FBI in Newark, Ithaca and Syracuse, New York, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.

This case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Stephen B. Reynolds of the District of Connecticut, and Trial Attorneys Brian Fleming and Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.

Yu Long, 38, a citizen of China and lawful permanent resident of the U.S., waived his right to be indicted and pleaded guilty today in New Haven federal court in Connecticut, to charges related to his theft of numerous sensitive military program documents from United Technologies and transporting them to China.

Long pleaded guilty to one count of conspiracy to engage in the theft of trade secrets knowing that the offense would benefit a foreign government, foreign instrumentality or foreign agent, an offense that carries a maximum term of imprisonment of 15 years. He also pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act, an offense that carries a maximum term of imprisonment of 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Deirdre M. Daly for the District of Connecticut, Special Agent in Charge Matthew Etre of Homeland Security Investigations (HSI) in Boston, Massachusetts, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division and Special Agent in Charge Danielle Angley with the Air Force Office of Special Investigations (AFOSI).

“Long admitted to stealing and exploiting highly sensitive military technology and documents, knowing his theft would benefit China’s defense industry and deliberately contravene the embargo on U.S. Munitions List technology the United States has imposed on China,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and disrupting and prosecuting this kind of economic espionage is one of the National Security Division’s highest priorities.”

“In an effort to further his own career, this defendant stole an extraordinary amount of proprietary military program information from United Technologies and transported much of that stolen information to China,” said U.S. Attorney Daly. “His actions, which he knew would benefit China, not only violated his employment agreement and damaged the company, but have threatened our country's national security interests. U.S. companies continue to be targeted by those who seek to steal intellectual property, trade secrets and advanced defense technology – whether through a computer hack or cyber intrusion, or through a rogue employee. Working closely with our nation’s defense contractors, we will relentlessly investigate and prosecute those who steal, or attempt to steal, trade secrets and sensitive military information, whether for their own personal gain or for the benefit of foreign actors.”

“These sophisticated technologies are highly sought after by our adversaries,” said Special Agent in Charge Etre. “They were developed to give the United States and its allies a distinct military advantage, which is why HSI and our law enforcement partners will continue to aggressively target the individuals who steal the ideas of others and sell these items.”

"Today's plea demonstrates the commitment of the Defense Criminal Investigative Service and our federal law enforcement partners to identifying those who illegally export sensitive defense information to adversarial Foreign governments," said Special Agent in Charge Rupert. "DCIS will continue to safeguard sensitive technology and to shield America's investment in national defense by disrupting efforts of groups and individuals who try to illegally acquire our national security assets."

“This case highlights the complexity in which the FBI and law enforcement are being challenged to keep the integrity of our industry intellectual property intact,” said Special Agent in Charge Ferrick. “Investigating criminal activity of this nature will continue to be a priority.”

“This case was enabled by the outstanding teamwork of the FBI, DCIS, HSI, AFOSI and the U.S. Attorney's office,” said, Special Agent in Charge Angley. “In addition, it demonstrates the focus of law enforcement agencies to protect our nation's critical resources.”

According to court documents and statements made in court, from approximately May 2008 to May 2014, Long worked as a Senior Engineer/Scientist at United Technologies Research Center (UTRC) in Connecticut. Long’s employment at UTRC included work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.

Beginning in 2013, Long expressed his intent to individuals outside UTRC to return to China to work on research projects at certain state-run universities in China using knowledge and materials he had acquired while employed at the UTRC. To that end, Long interacted with several state-run institutions in China, including the Chinese Academy of Science (CAS) and the Shenyang Institute of Automation (SIA), a state-run university in China affiliated with CAS.

During 2013 and 2014, Long was recruited by SIA and other state-run universities, during which he leveraged information that he had obtained while working at UTRC to seek employment in China, culminating in his travel to China in the possession of voluminous documents and data containing highly sensitive intellectual property, trade secrets and export controlled technology, which he had unlawfully stolen from UTRC.

In December 2013, after Long agreed in principle to join SIA, an SIA-CAS Director and an SIA-CAS Recruiter asked Long to provide documents from his work at UTRC and examples of projects on which he had worked to substantiate the claims Long made in his application, and interview with SIA. Long agreed.

On Dec. 24, 2013, Long emailed several documents to the SIA-CAS Director, including a document that contained the cover page of an export controlled UTRC presentation on Distortion Modeling dated Sept. 30, 2011.

While negotiating with SIA, Long also continued to explore other opportunities at other state-run institutions in China. In one email, Long stated: “I have made my mind to return to China, so have prepared a research plan based on my industry experience and current projects.” In the research plan, Long stated: “In the past five years, I have been working with Pratt Whitney, also other UTC business units, like UTAS (including Hamilton Sundstrand and Goodrich), Sikorsky, CCS (including Carrier and Fire & Security), and Otis. These unique working experiences have provided me a great starting point to perform R&D and further spin off business in China. I believe my efforts will help China to mature its own aircraft engines.”

On May 30, 2014, Long left UTRC. In June 2014, Long traveled to China and began working for SIA. Beginning in July 2014, digital evidence and forensic analysis indicated that Long brought with him and accessed in China a UTRC external hard drive that had been issued to him and that he unlawfully retained.

In July 2014, Long was listed as the project leader on a lengthy research plan for CAS involving fourteen other individuals. The plan was replete with references to how the proposed research and development would benefit China. The plan stated: “The three major engine companies in the world, i.e. GE, Pratt & Whitney in the US and Rolls-Royce in the UK, are all using this technology. . . Our nation lacks the ability to process high performance components, such as airplane wings, tail hooks on carrier aircrafts, and blisks . . . Because of the technology embargo imposed by western developed countries, it is very difficult for us to obtain more advanced design and manufacturing technology . . . This research project will increase our independent ability, efficient and quality in key component manufacturing.”

On or about Aug. 12, 2014, the document on Distortion Modeling – the same document from which Long had sent the cover page to the SIA-CAS Director on Dec. 24, 2013 – was accessed on the external hard drive. Travel records and forensic analysis confirmed that both Long and the external hard drive were in China when this file was accessed.

On Aug. 19, 2014, Long returned to the U.S. from China through John F. Kennedy International Airport in New York. During a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, Long was found in the possession of a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application highlighted certain parts of Long’s work related to the F119 and F135 engines while at UTRC.

On or about Aug. 20, 2014, Long emailed an individual at a university in China, attaching an updated “achievement and future plan.” In the plan, Long discussed his work related to the F119 and F135 U.S. military fighter jet engines and stated that he also had knowledge of unpublished UTRC projects in which the U.S. Air Force had shown interest.

On Nov. 5, 2014, Long boarded a flight from Ithaca, New York to Newark Liberty International Airport in Newark, New Jersey, with a final destination of China. During Long’s layover in Newark, CBP officers inspected Long’s checked baggage and discovered that it contained sensitive, proprietary and export controlled documents from another defense contractor, Rolls Royce.

Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Pratt and Rolls Royce, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to restrictions on further dissemination. Rolls Royce reviewed the documents found in Long’s possession at Newark Liberty Airport and confirmed that it provided the documents to members of the consortium, which included Pratt. Rolls Royce further confirmed that Long was never an employee of Rolls Royce. A review of UTRC computer records indicated that Long had printed the documents while employed at UTRC. 

Long was arrested on a federal criminal complaint on Nov. 7, 2014. A review of Long’s digital media seized at the time of his arrest revealed voluminous files protected by the International Traffic in Arms Regulations and Export Administration Regulations, and voluminous files proprietary to various U.S. companies. In short, the investigation revealed that Long took his laptop and the UTRC external hard drive with him to China in 2014, at which time there was a substantial body of highly sensitive, proprietary and export controlled materials present on that digital media. UTRC has confirmed that the hard drive that Long unlawfully retained and accessed in China contained not only documents and data from projects on which Long worked while employed at the company but also from projects on which he did not work to which he would have had access. 

A sentencing date has not been set. Long has been detained since his arrest.

This investigation is being led by the FBI in New Haven in coordination with Homeland Security Investigations in New Haven and Newark; the Defense Criminal Investigative Service in New Haven; the U.S. Air Force’s Office of Special Investigations in Boston, Massachusetts; and, the Department of Commerce’s Boston Office of Export Enforcement. U.S. Attorney Daly and Acting Assistant Attorney General McCord also thanked the FBI in Newark, Ithaca and Syracuse, New York, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.
           
This case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Stephen B. Reynolds of the District of Connecticut, and Trial Attorneys Brian Fleming and Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIEL GAMERO, 24, of Hartford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to heroin distribution and firearm possession offenses.

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.

According to court documents and statements made in court, in February 2016, Hartford Police began investigating the distribution of heroin marked with a particular brand stamp that was linked to at least two overdose deaths, one in Vernon on February 1 and one in Granby on March 22.  Between February and April 2016, law enforcement conducted four controlled purchases of heroin marked with the same stamp from GAMERO and his associate, Charlie Tacuri.

GAMERO and Tacuri were arrested on April 21.  On that date, a search of GAMERO’s Preston Street residence revealed approximately 650 bags of heroin, a quantity of marijuana, a loaded firearm and approximately $1,600 in cash.  At the time of Tacuri’s arrest, Tacuri possessed approximately 60 bags of heroin and approximately $1,200 in cash. 

GAMERO pleaded guilty to one count of conspiracy to distribute heroin, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive term of imprisonment of at least five years.  Judge Shea scheduled sentencing for March 13, 2017.

On December 8, 2016, Tacuri, 19, formerly of Hartford, pleaded guilty to one count of conspiracy to distribute heroin.  He is scheduled to be sentenced on March 6, 2017.

This investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hartford, Vernon and Granby Police Departments.  The Tactical Diversion Squad 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 is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ELBERT LLORENS, 24, of New Haven, pleaded guilty today before U.S. Magistrate Judge Robert A. Richardson in Hartford to a federal carjacking offense.

According to court documents and statements made in court, on January 1, 2016, two men from out of state who were driving a rented 2015 Volkswagen Passat were victims of an armed carjacking in the vicinity of Hobart Street and Myrtle Street in Meriden.  The victims reported that they had stopped to ask an individual, later identified as Kyle Valentine, for directions to a gas station.  Valentine told the victims to follow his car, which they did.  After traveling a few minutes, Valentine’s car stopped and LLORRENS pointed a handgun at one of the victims who was sitting in the passenger seat of the car, opened the door and stated “I want everything.”  The victims exited the car and LLORRENS and Valentine stole their wallets and cell phones and then drove away in the Passat.

In pleading guilty, LLORRENS also admitted that, on January 3, 2016, he committed armed robberies of a gas station in East Haven and a gas station in New Haven; on January 4, 2016, he attempted to rob a convenience store in Milford; and, on January 5, 2016, he used a firearm and threats of violence to steal a 2006 Chevy Cobalt and a wallet from a victim in New Haven.

LLORRENS was arrested by New Haven Police shortly after the January 5 carjacking.

LLORRENS pleaded guilty to one count of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 25 years.  He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 15, 2017.  LLORRENS has been detained since his arrest.

Valentine, 25, of New Haven, pleaded guilty to the same charge on August 11, 2016.  He awaits sentencing, and also is detained.

This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford and New Haven Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HECTOR RAUL CINTRON, also known as “G” and “Big G,” 22, of Hartford, was arrested today on a federal criminal complaint charging him distributing 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.

Following his arrest, CINTRON appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.

As alleged in court documents, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.”  The victim, an 18-year-old male, was pronounced dead at the scene.  At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue.  The investigation revealed that Kerry Scanlan, of Avon, arranged to purchase heroin from CINTRON in Hartford.  On March 18, 2016, the victim drove to Avon, picked up Scanlan and then drove to Hartford to purchase heroin from CINTRON.

On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”

It is further alleged that, on two occasions in November 2016, CINTRON sold approximately 200 bags of heroin to an individual working with law enforcement.

The complaint charges CINTRON with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.

Scanlan was arrested on the same charge on August 9, 2016.

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

This matter is being investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East and East Haddam Police Department.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MAURICE SHARPE, 44, of Waterbury, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of health care fraud.

This matter stems from an ongoing health care fraud investigation being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Connecticut Office of the Attorney General.  The investigation identified fraudulent activity in the area of behavioral health services.  Through the Medicaid program, the State of Connecticut provides coverage for mental health and counseling services to citizens who cannot otherwise afford health insurance.  “Behavioral health” includes a wide variety of health care providers who provide care on an outpatient basis, including psychiatrists, psychologists, licensed clinical social workers, licensed marriage and family therapists, licensed professional counselors, and licensed alcohol and drug counselors.

According to court documents and statements made in court, in February 2011, SHARPE and his mother, Patricia Lafayette, and another individual, formed Family First Community Support Services, LLC, a social services agency located in Torrington.  SHARPE was the office manager for the agency.  Lafayette and the other individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam.  Lafayette and the other individual proposed a scheme to Silver to defraud Medicaid by permitting Lafayette and the other individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number.   The services were either performed by unlicensed individuals or not performed at all.  Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to Lafayette and the other individual.

As part of his plea, SHARPE admitted that he submitted claims to Medicaid for psychotherapy services that falsely represented that Silver had personally provided the services. SHARPE also admitted that he submitted hundreds of claims to Medicaid for psychotherapy services purportedly provided to SHARPE’s family members, including SHARPE’s children and nieces and nephews, when no such services were ever provided.  SHARPE also assisted in the preparation of records that falsely documented the nature and extent of the services received by his family members.

The charge of health care fraud carries a maximum term of imprisonment of 10 years.  A sentencing date has not been scheduled.

Lafayette and Silver previously pleaded guilty to health care fraud for their roles in the scheme.  As part of their pleas, Lafayette and Silver admitted defrauding Medicaid of over $1.6 million through the scheme.  They both await sentencing.

This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging NICHOLAS MURPHY, 27, of Exeter, R.I., with one count of traveling to engage in illegal sexual activity with a minor.

The indictment alleges that in September 2015, MURPHY travelled from Rhode Island to Connecticut for the purpose of engaging in a sexual act with a minor

If convicted of the charge, MURPHY faces a maximum term of imprisonment of 30 years.

MURPHY was arrested on related state charges on May 9, 2016.  He is scheduled to be arraigned on December 28 in Hartford federal court.

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 Federal Bureau of Investigation, Plainfield Police Department and Rhode Island 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 JONATHAN FISHER, 35, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 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 April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence.  The emergency involved an 18-year-old male who had died from an apparent heroin overdose.  FISHER was not present at the time law enforcement had arrived.  A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp.  A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.

Approximately one month prior to the overdose death, FISHER was arrested by Norwich Police after he was found in possession of numerous baggies of heroin that were marked with the same stamp.

On April 12, 2016, Norwich Police arrested FISHER at a Norwich hotel.  A search of FISHER’s wallet contained two glassine baggies containing suspected heroin and marked with the same brand stamp.  A search of the hotel room where FISHER had been staying revealed more than 300 bags of heroin, prescription narcotics, more than one pound of marijuana, a digital scale and hundreds of empty glassine bags marked with the same stamp.

On May 2, 2016, FISHER pleaded guilty to one count of possession with the intent to distribute, and distribution of, heroin.  FISHER, who had been released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL JESSE CONRAD, 32, formerly of New Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 186 months of imprisonment, followed by 10 years of supervised release, for producing child pornography. 

According to court documents and statements made in court, between October 2013 and June 2014, CONRAD sexually exploited three different minor females.  CONRAD met one of the minor females in February 2014 through Omegle, an internet video chatting service.  The minor was 15 years old at the time and lived in Connecticut.  After their initial conversation, CONRAD and the minor female began communicating regularly through the Kik text messaging and photo sharing application on their cell phones.  On March 1, 2014, the two met in person, and CONRAD drove the minor to Massachusetts where they engaged in sexual activity.  Subsequently, on five or six occasions between March and June 2014, CONRAD picked up the minor and drove her to his residence in Connecticut where they engaged in sexual intercourse.  During some of the encounters, CONRAD used his iPhone to take videos and pictures of the minor engaged in sexual activity.

In addition to meeting the minor in person, CONRAD had several online video conversations with the minor over Skype and Omegle.  During some of these video conversations, the minor engaged in sexually explicit conduct, which CONRAD recorded and saved on his computer.  CONRAD also repeatedly persuaded the minor to take sexually explicit pictures of herself at her home and send them to him via Kik.

CONRAD similarly communicated with two other minors, who were also 15 years old at the time, over Skype and Omegle.  One of the minors lived in New York and the other minor lived in Nebraska.  As with the first victim, during several of the video conversations, CONRAD persuaded them to engage in sexually explicit conduct, which CONRAD recorded and saved on his computer.  CONRAD also repeatedly persuaded the minors to take sexually explicit pictures of themselves at their homes and send them to him via Kik.

In total, CONRAD had saved on his computer and iPhone approximately 200 images and 52 videos of the three minors engaged in sexually explicit conduct.

On May 17, 2016, CONRAD waived indictment and pleaded guilty to one count of production of child pornography.

After his arrest on September 10, 2015, CONRAD was released on bond and placed on electronic monitoring.  At the conclusion of today’s sentencing proceeding, he was remanded to custody to begin serving his sentence.

This matter was investigated by Homeland Security Investigations and the Connecticut State Police.  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, Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division for New England, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that SHEFFIELD PHARMACEUTICALS, LLC, formerly known as Faria Limited, LLC, has entered into a deferred prosecution agreement with the government to resolve violations of the Clean Water Act.

In proceedings today before U.S. District Judge Alvin W. Thompson in Hartford, the government filed a criminal information charging SHEFFIELD PHARMACEUTICALS (“SHEFFIELD”) with violating the Clean Water Act.  As part of a deferred prosecution agreement, SHEFFIELD is required to commit no criminal conduct, comply with all applicable environmental laws and regulations, and pay $1 million, most of which will support environmental conservation projects in coastal Connecticut.  SHEFFIELD will make the payment in installments over a seven-year period.  If SHEFFIELD fully complies with this agreement, the information will be dismissed. 

The information and deferred prosecution agreement relate to the conduct of Thomas H. Faria, SHEFFIELD’s former president and chief executive officer, who pleaded guilty to a felony violation of the Clean Water Act on July 8, 2014.  From at least April 2004 to May 2011, under Faria’s leadership, SHEFFIELD discharged polluted industrial wastewater from its New London factory into the municipal sewage system without the required permit and industrial wastewater treatment system.  As a condition of his guilty plea, FARIA resigned from the company on March 7, 2014, and no longer has any role in its operations or management.  On February 13, 2015, Judge Thompson sentenced Faria to three years of probation, a $30,000 fine, and 300 hours of community service. 

According to court documents and statements made in court, the Clean Water Act requires that every company obtain a permit from the Connecticut Department of Energy and Environmental Protection (“CT DEEP”) before it can discharge industrial wastewater to the public sewage system, commonly known as the publicly owned treatment works (“POTW”).  Companies are also required, among other things, to test and monitor their industrial wastewater monthly to ensure that chemical levels in the wastewater do not exceed federal and state limitations.

SHEFFIELD has a factory at 170 Broad Street in New London that manufactures a wide range of over-the-counter pharmaceutical creams, ointments and toothpastes.  From approximately 1986 to July 2011, SHEFFIELD discharged industrial wastewater from its New London manufacturing operations to the New London POTW without a permit and in violation of Connecticut’s approved pretreatment program.  The New London POTW discharges to the Thames River in southeastern Connecticut.  During this entire time period, SHEFFIELD lacked a pretreatment system at its factory to treat its industrial wastewater prior to discharge, performed no regular monitoring of its discharges of industrial wastewater, and submitted no monthly monitoring reports to the CT DEEP.

After becoming the company’s president and chief executive officer in April 2003, Faria learned through his own employees that SHEFFIELD was discharging pollutants in its industrial wastewater without the required permit.  Faria also learned that in order to obtain a permit from CT DEEP, the company would have to install, at significant expense, a wastewater pretreatment system that would pretreat its industrial wastewater prior to discharging it to the New London POTW.  Although Faria’s own employees urged him to make the financial investment to bring the company into compliance, he chose not to do so.  Faria continued this illegal course even when four environmental consulting firms, which the company had hired, advised him that the discharge of industrial wastewater to the public sewage treatment system, without a pretreatment system and CT DEEP permit, is illegal.

On April 20, 2011, the CT DEEP conducted an unannounced inspection of SHEFFIELD.  After finding that the company had no wastewater discharge permits, the CT DEEP inspector issued a Notice of Violation and cited the company for discharging manufacturing and laboratory wastewater without a permit.  On or about May 27, 2011, SHEFFIELD submitted a permit application to CT DEEP.  In July 2011, the company installed a wastewater pretreatment system at its factory to pretreat the pollutants contained in its industrial wastewater prior to its discharge to the New London POTW. 

Currently led by a new management team, SHEFFIELD has remained compliant with the Clean Water Act.  The company’s current chief executive officer, Jeffrey Davis, is a former SHEFFIELD manager who personally urged Faria to bring the company into compliance with the Clean Water Act as early as 2005.  The company has also established a formal procedure to protect whistleblowers who come forward.

“Prior leadership at Sheffield took short cuts to save money by discharging polluted industrial wastewater into the public sewage system for years without the requisite treatment and regulatory permit,” said U.S. Attorney Daly.  With today’s disposition and the former chief executive’s felony conviction in 2014, we are confident that such short-sighted decisions are a thing of the past at Sheffield.  Simply put, sound environmental stewardship is good business for all companies and their employees.  Sheffield has agreed to pay $1,000,000, which includes a $150,000 fine and $850,000 to fund beneficial environmental projects in coastal Connecticut.  We thank our partners at the EPA and Connecticut’s Department of Energy and Environmental Protection for their outstanding partnership in this important prosecution.”

“This agreement demonstrates EPA’s commitment to protecting Connecticut’s environment and ensuring that all companies commit to the resources needed to keep pollutants from our systems,” said EPA Special Agent in Charge Amon.  “EPA’s Criminal Investigation Division will continue to work closely with the U.S. Attorney’s Office and CT DEEP to achieve this.”

“We take compliance seriously and it is important that Mr. Faria was held accountable for disregarding and defying environmental laws,” said Commissioner Klee.  “This action sends a strong message that ignoring environmental laws – and causing pollution of and damage to this state’s natural resources – carries significant consequences.”

This matter was investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection.  The case was prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Peter Kenyon.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Shelly Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that ROBERT KUSS, 54, of Cheshire, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court one count of mail fraud stemming from his role in a scheme to defraud the U.S. Postal Service of nearly $750,000.

According to court documents and statements made in court, KUSS is the managing partner of Creative Marketing Group, LLC (“CMG”), a mail service provider in the business of sending bulk mailings.  CMG has a Permit Imprint bulk mailing permit (“PI permit”) that allows the company to print postage indicia directly onto an envelope rather that affix a postage stamp or a meter impression to each piece of mail (the printed postage indicia tend to be pink printings on the upper right hand corner of an envelope).

Generally, a PI permit holder has an account from which the USPS debits the appropriate postage charge for each bulk mailing.  To utilize its PI permit, a mailer generally drops off its bulk mailing at the office that maintains its permit, known as a Business Mail Entry Unit (“BMEU”) – in this instance the Bristol (Conn.) Post Office.  There, the mailing is examined and accepted by BMEU postal employees.  The USPS then debits the mailer’s account the appropriate amount for postage.

To save money, a bulk mailer may also transport the bulk mailing itself to a destination USPS facility to obtain lower postage rates rather than simply deliver the bulk mailing to the appropriate BMEU.  To do so, a mailer must bring both the bulk mailing and a form known as Postal Service Form 8125 (“PS 8125 Form”) to the BMEU for verification.  Once verified, the BMEU personnel debit the mailer’s account and fill out the PS 8125 Form with information about the bulk mailing, including the mailer’s permit number, the total number of pieces of mail and the total mail weight.  BMEU personnel also affix a USPS stamp to the form.  The mailer then takes the bulk mailing and the PS 8125 Form to the destination USPS facility for delivery.  A USPS employee at the destination facility reviews the bulk mailing and the form to ensure they match and for completeness before accepting the mailing and the PS 8125 Form.

Between approximately July 2014 and March 2016, KUSS brought bulk mailings to destination USPS facilities with fraudulent PS 8125 Forms.  KUSS had filled out and stamped the forms to appear as though the bulk mailings had been brought to and verified by the BMEU in Bristol, and as though the USPS had appropriately debited his advanced deposit account.  In fact, KUSS had not brought the bulk mailings to the BMEU, the BMEU had not verified the mailings, and the USPS had not debited his advanced deposit account.

KUSS delivered at least 125 bulk mailings to destination USPS facilities around the country pursuant to this scheme.  As a result, he sent 3,260,183 pieces of mail without paying for postage, and the USPS lost $749,573.

The charge of mail fraud carries a maximum term of imprisonment of 20 years.  KUSS is scheduled to be sentenced by U.S. District Judge Robert Chatigny on April 17, 2017.

This matter is being investigated by the U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and John H. Durham.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NATHANIEL SMITH, 29, of Aurora, Colorado, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of enticement of a minor to engage in sexual activity.

According to court documents and statements made in court, in January 2016, SMITH used his cell phone and internet-based messaging and video chatting services, including Kik and Skype, to entice a 13-year-old female to engage in sexual activity.

SMITH has been detained since January 25, 2016, when he was arrested on related state charges in New London.

Judge Shea scheduled sentencing for April 7, 2017, at which time SMITH faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

This matter is being investigated by the Federal Bureau of Investigation, 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 JAMILA WILLIAMS-STEVENSON, 36, of West Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of bank fraud and one count of aggravated identity theft.

According to court documents and statements made in court, between 2012 and July 2016, WILLIAMS-STEVENSON and Lorena Coburn worked together to steal personal identifying information from victims and commit fraud using the stolen information.  The sources of the personal identifying information included patients at Yale New Haven Hospital, where WILLIAMS-STEVENSON worked as a care companion.

As part of the scheme, WILLIAMS-STEVENSON and Coburn submitted to the U.S. Postal Service change of address applications for their victims so that the victims’ mail, including checks that were intended for the victims, would be diverted from the victims’ true addresses to addresses that were controlled by WILLIAMS-STEVENSON and Coburn.  WILLIAMS-STEVENSON and Coburn also stole checks from residential and business mailboxes and then counterfeited the checks so that they were payable to their identity theft victims.  They then opened bank accounts in the names of identity theft victims, deposited the stolen and counterfeit checks into those accounts, and then withdrew the funds from those accounts.

More than 20 individuals have been victimized through this scheme, resulting in an attempted loss of more than $150,000 to banks and victims.

WILLIAMS-STEVENSON and Coburn also obtained a life insurance policy in the amount of $75,000 in the name of an identity theft victim, and WILLIAMS-STEVENSON was named as the beneficiary on the policy.  Forensic analysis of WILLIAMS-STEVENSON’s iPhone, which was seized at the time of her arrest, revealed a series of text messages between WILLIAMS-STEVENSON and Coburn discussing how they might be able to cause the death of this victim in order to collect on the life insurance policy.

WILLIAMS-STEVENSON was arrested on July 21, 2016.  She is detained pending sentencing.

Coburn, 42, of West Haven, was arrested on July 27, 2016.  She pleaded guilty to the same charges on November 30, 2016, and is released on a $100,000 bond.

The charge of bank fraud carries a maximum term of imprisonment of 30 years, and the charge of aggravated identity theft carries a mandatory consecutive term of imprisonment of two years.  Sentencing dates have not been scheduled.

This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the Connecticut Financial Crimes Task Force and the West Haven, New Haven and Orange Police Departments.  This case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala

U.S. Attorney Daly stated that the investigation is ongoing, and encouraged citizens who believe that they have been victimized by this scheme, or who have had a mailing address changed without their consent, to call the U.S. Postal Inspection Service at 203-782-7391.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, waived her right to indictment and pleaded guilty today in New Haven federal court to multiple offenses that she committed while awaiting incarceration after a prior federal conviction.

According to court documents and statements made in court, on December 17, 2014, DAVIS, who was then known as Theresa Sutherland, was sentenced in Hartford federal court to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme at an insurance company where she was employed.  As part of her sentence, DAVIS was ordered to pay total restitution of $400,000 to the victim insurance company and three previous employers that she defrauded.

Beginning in January 2015, DAVIS, through her attorney, made five separate motions to postpone her prison report date based on her claims of a diagnosis of terminal cancer and heart conditions.  In association with her court motions, DAVIS submitted letters from various medical professionals detailing her claimed medical conditions.  DAVIS created the letters and forged the medical professionals’ signatures.  DAVIS’s prison report dates were continued based on these fraudulent submissions.

In March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS.  DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.

On April 19, 2016, DAVIS submitted an application for a U.S. passport at the U.S. Postal Service facility on Weston Street in Hartford.  On the application where it states “Have you ever applied for or been issued a U.S. Passport Book or Passport Card?” DAVIS marked an “X” in the “No” box.  In 2007, DAVIS applied for and received a U.S. passport when she was known as Theresa Juliate Sutherland.

At various times between December 2014 and September 2016, DAVIS was employed at a local insurance company and local hospitals.  From May 28, 2016 to September 10, 2016, while she was employed at an insurance company and then a hospital under her new identity, DAVIS received $9,808 in unemployment compensation from the State of Connecticut under her previous identity. 

DAVIS pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years; one count of knowingly making a false statement on a passport application, which carries a maximum term of imprisonment of 10 years; one count of making a false statement, which carries a maximum term of imprisonment of five years, and one count of aggravated identity theft, which carries a mandatory two-year term of imprisonment.  She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 17, 2017.

DAVIS has been detained since her arrest on September 17, 2016.

This matter is being investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor and East Windsor Police Department.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH McANDREW, 75, of Pawcatuck, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment, followed by six months of home confinement and three years of supervised release, for misusing client funds.

According to court documents and statements made in court, McANDREW was the Chief Executive Officer and Managing Partner of Wall Street Venture Capital Ltd. (“WSVC”), which offered lending and brokerage services to prospective clients who were seeking to raise money for business ventures.  McANDREW required each client who retained WSVC’s services to pay upfront fees of approximately $30,000, which he falsely represented would be used solely for expenses incurred in raising money on the clients’ behalf.  In truth, McANDREW used the upfront fees he received from WSVC’s clients for personal expenditures, including to purchase stocks and pay personal credit card charges.

In total, McANDREW stole $317,628 from clients of WSVC who believed their money would be used to secure financing on their behalf.  None of these clients ever received financing through WSVC.

Judge Bolden ordered McANDREW to pay full restitution.

On April 5, 2016, McANDREW pleaded guilty to one count of wire fraud.

Judge Bolden sentenced McANDREW below the recommended sentencing guidelines range of 27 to 33 months of imprisonment due in significant part to McANDREW’s health condition.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Goldsmith Romero, the Special Inspector General for the Troubled Asset Relief Program, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Laura S. Wertheimer, the Inspector General for the Federal Housing Finance Agency, and Fred Gibson, the Acting Inspector General for the Federal Deposit Insurance Corp., today announced that a federal grand jury in New Haven has returned an indictment charging former Cantor Fitzgerald & Co. bond trader, DAVID DEMOS, 35, of Westport, with six counts of securities fraud.

The indictment was returned on December 7.  DEMOS is scheduled to be arraigned today at 3:30 p.m. before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven.

According to the indictment, Residential Mortgage-Backed Securities (RMBS) are collections of mortgages and home equity loans, which are grouped together and sold as packages between and among banks, money managers, pension funds and others.  Investors in RMBS receive payments on a monthly basis.  Those payments are based on the extent to which homeowners, who had originally taken out the mortgages or loans, repaid their lenders.  The payments to RMBS investors continue until the homeowners repay their mortgage debt, refinance or default.  Unlike stocks that trade on the New York Stock Exchange or the NASDAQ, RMBS are not publicly traded on an exchange and pricing information is not publicly available.  Instead, buyers and sellers of RMBS use broker-dealers, like Cantor Fitzgerald, to execute individually negotiated transactions.

DEMOS was a trader and managing director at Cantor Fitzgerald from November 2011 until his employment was terminated in February 2013.  The indictment alleges that DEMOS defrauded customers by fraudulently inflating the purchase price at which Cantor Fitzgerald could buy a RMBS bond to induce their victim-customers to pay a higher price for the bond, and by fraudulently deflating the price at which Cantor Fitzgerald could sell a RMBS bond to induce their victim-customers to sell bonds at cheaper prices.

It is alleged that, as a result of this scheme, Cantor Fitzgerald and DEMOS profited illegally, and victim-customers sustained millions of dollars of losses.

The victims of this alleged scheme include asset managers and firms affiliated with or subsidiaries of recipients of funds from the U.S. Government’s Troubled Asset Relief Program (TARP).

If convicted of the charges in the indictment, DEMOS faces a maximum term of imprisonment of 20 years on each count.

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.

The case has been assigned to U.S. District Judge Alvin W. Thompson in Hartford.

This matter is being investigated by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Federal Deposit Insurance Corp—Office of Inspector General, the Federal Bureau of Investigation, and the Office of Inspector General—Federal Housing Finance Agency.  The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.

Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and in the federal government’s bailout.  The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice,  U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and state Attorneys General offices around the country.

For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, which is chaired by Attorney General Loretta Lynch, visit www.stopfraud.gov.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EROS DIAZ, also known as “Red,” 21, of West Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 45 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine, heroin and fentanyl.  Judge Covello also ordered DIAZ to perform 100 hours of community service while on supervised release.

According to court documents and statements made in court, in the spring of 2015, the DEA’s Hartford Task Force received information that DIAZ was selling narcotics in the Hartford area.  Between May 2015 and June 2016, an undercover agent conducted 17 controlled purchases of crack cocaine and heroin from DIAZ and his associates.  Prior to each of the controlled purchases, the undercover agent arranged to purchase narcotics by calling or texting DIAZ.  DIAZ then directed the agent to travel to different locations in Hartford to complete the transaction.  DIAZ either personally conducted the hand-to-hand exchange of narcotics with the agent, or would send an associate to complete the transaction.

Subsequent laboratory testing of the narcotics that were purchased revealed that some of the bags of purported heroin also contained fentanyl and acetyl fentanyl, and, in some instances, contained fentanyl and acetyl fentanyl and no heroin at all.

At the time of the drug sales, DIAZ was released on a $750,000 bond after being arrested in May 2015 on first degree assault and other charges related to a shooting that occurred in March 2015.  The charges are pending in state court.

DIAZ has been detained since his arrest on June 7, 2016.  On September 16, 2016, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack”), heroin, fentanyl and acetyl fentanyl.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a six-count superseding indictment charging DAVID ADAMS, 56, of Old Saybrook, with additional tax offenses.

On May 3, 2016, the grand jury returned an indictment charging ADAMS with one count of tax evasion and one count of filing a false tax return for the 2011 tax year.  The superseding indictment, which was returned yesterday, charges ADAMS with filing a false tax return for the 2009 tax year, filing a false tax return and tax evasion for the 2011 tax year, filing a false tax return and tax evasion for the 2012 tax year, and attempting to interfere with the administration of the tax laws. 

As alleged in the superseding indictment, in the early 1980s, and then continuing from 1996 onward, ADAMS was substantially delinquent in filing his tax returns and paying amounts owed to the IRS.  Starting at least as early as 1998, ADAMS repeatedly engaged with IRS collections officers tasked with trying to get ADAMS into compliance with the tax laws.  Although he was repeatedly advised by IRS collections officers about his obligations to pay estimated taxes, ADAMS continually failed to pay those taxes on time or in sufficient amounts. 

The indictment further alleges that ADAMS sold an online floral business in 2002, which accounted for a significant portion of $6,269,960 in taxable income he claimed on his 2002 tax return.  Although ADAMS represented to the IRS in August 2003 that he was enclosing payment of $1,250,000, no such payment was enclosed and ADAMS never made the payment.

It is further alleged that ADAMS engaged the services of a certified public accountant to prepare his personal tax returns beginning in approximately 1993, and then repeatedly failed to give the accountant complete, accurate information.  For example, for the 2009 tax year, ADAMS told his accountant that he had made $550,000 in estimated tax payments when, in fact, ADAMS knew he had only paid $425,000.  Similarly, in 2011, ADAMS told his accountant that he had made $220,000 in estimated tax payments, but knew that he had only made $100,000.   

The indictment further alleges that, in June 2011, ADAMS sold his partnership interest in another online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale.  Although he knew that he owed substantial taxes on that amount, ADAMS engaged in a number of affirmative acts to conceal and attempt to conceal this income in order to evade the assessment of a tax including:  (1) failing to tell his accountant about the $4,708,419.20 in income ADAMS received in 2011; (2) providing the accountant with false information about ADAMS’s estimated tax payments for the year, telling the accountant that he had paid $220,000 when in fact, ADAMS knew he had only paid $100,000 in estimated taxes for 2011; (3) causing the accountant to prepare his 2011 tax return with false and fraudulent information; and (4) representing to an IRS revenue officer who was responsible for collecting ADAMS’s delinquent tax payments and securing ADAMS’s overdue tax returns, that he had hoped to have funds to pay down his back tax liability (including tax liability associated with the 2002 sale), but that nothing had been “panning out.”  ADAMS failed to disclose to the revenue officer that he had received $4,708,419.20 in cash less than three weeks earlier.

It is alleged that, in June 2012, ADAMS received an additional $1,320,609.59 into his personal bank account as net proceeds of the 2011 sale.  Although he knew that he owed substantial taxes on that amount, ADAMS failed to disclose the income to his accountant, and failed to declare it on his tax return for that year.

As further alleged in the superseding indictment, ADAMS engaged in a more than 16-year effort to inhibit the IRS’s efforts to collect back taxes from him.  Among other things, ADAMS bounced checks to the IRS; told IRS collections officers that payment had been sent when it had not; promised to pay delinquent tax liabilities in full and then delayed payment, made only partial payment, failed to pay at all, or paid off one liability while leaving another liability unpaid; claimed that he lacked funds to pay his delinquent tax but failed to disclose that he had access to enough cash to fully pay back his tax liabilities; filed false and fraudulent returns with the IRS; overstated the amounts of estimated taxes paid to the IRS, and failed to declare more than $6 million in income to the IRS.

The indictment charges ADAMS with two counts of tax evasion, three counts of making and subscribing a false tax return, and one count of attempting to interfere with the administration of the IRS laws.  Each tax evasion offense carries a maximum term of imprisonment of five years, each count of filing a false tax return carries a maximum term of imprisonment three years, and the interference charge carries a maximum term of imprisonment of three years.

ADAMS was arrested on a federal criminal complaint on April 14, 2016, and is released on a $500,000 bond secured by real property.   

As of May 2016, ADAMS owed approximately $4.6 million in back taxes, interest and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011, and 2012.  Interest and penalties have continued to accrue since that time.

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 has been investigated by the Internal Revenue Service, Criminal Investigation Division.  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 JAMES BRODERICK III, 58, of New Milford, pleaded guilty today in New Haven federal court to a federal extortion charge.

According to court documents and statements made in court, in late December 2015 to early January 2016, BRODERICK lent an individual approximately $1,500 with an understanding that the individual was required to pay BRODERICK $1,500, plus an additional $500 in interest, within four days of the initial loan.  When the individual failed to pay the loan within four days, BRODERICK asked Howard Hammer to assist him in collecting on the loan.  Hammer then sent text messages to the victim that threatened harm to the victim if he failed to pay his debt.  Hammer took screen shots of the threatening text messages and forwarded them to BRODERICK.  BRODERICK and Hammer also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.

On January 25, 2016, the victim suffered permanent bodily injury in connection with this conduct.

BRODERICK also made several extortionate loans to a second victim.  When the victim was unable to repay the usurious interest amounts, which were at least 10 percent of the principal per week, BRODERICK repeatedly threatened to use force to collect the debt.  Over the course of three years, BRODERICK collected more than $20,000 in interest payments from this second victim.

BRODERICK pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.

BRODERICK is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 1, 2017.

BRODERICK and Hammer were arrested on May 27, 2016.  BRODERICK is released on a $200,000 bond.

Hammer, of New Milford, pleaded guilty to the same charge on December 2, 2016.  He awaits sentencing, and has been detained since his arrest.

This matter is being investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad.  The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARCOS BOYD, 26, of Ansonia, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for being an armed drug dealer.

According to court documents and statements made in court, in January 2015, BOYD absconded from state parole supervision.  On November 10, 2015, when members of the U.S. Marshals Service Violent Fugitive Task Force, Ansonia Police and Connecticut Department of Correction parole officers encountered BOYD at a residence on High Street in Ansonia, BOYD climbed out of his second floor bedroom holding a firearm.  He then returned inside the house and barricaded himself in a bathroom.  A six-year-old child was in the house at the time.

After BOYD surrendered, officers seized a loaded .45 caliber semi-automatic pistol.  A search of BOYD’s bedroom also revealed 18.6 grams of heroin, drug packaging materials and $6,763 in cash.

On September 12, 2016, BOYD pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.

BOYD, who has been detained since his arrest, will begin serving his federal sentence after he completes his state sentence in June 2017.

BOYD’s criminal history includes four drug-related felony convictions

This case was prosecuted by Assistant U.S. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCISCO RODRIGUEZ, 50, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport, to 72 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.

This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven.  The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Will” and “Pancho,” obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.  RODRIGUEZ served as a lieutenant to Vasquez in the organization.

During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles.  In addition, bank accounts containing more than $300,000 have been frozen.

Seventeen individuals were charged as a result of this investigation.  All 17 pleaded guilty.

RODRIGUEZ has been detained since his arrest on July 15, 2015.  On September 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.

Vasquez 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 case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.

AMED VILLA, 51, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by five years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn., and similar warehouse burglaries in Illinois, Virginia, Florida and Kentucky. 

According to court documents and statements made in court, in early 2010, Amaury Villa, Amed Villa, Yosmany Nunez and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield.  The investigation revealed that, prior to the theft, Amaury Villa and Nunez traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area.  Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.

In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left.  That same night, Marquez drove a tractor trailer to the facility.  Thereafter, Amed Villa and Amaury Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system.  Amaury Villa, Amed Villa and Nunez then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse. 

The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $60 million.

The individuals who participated in the theft split up in Connecticut.  Marquez then drove the tractor trailer to Florida, where he subsequently reunited with Amaury Villa, Amed Villa and Nunez so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.

On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.

Subsequent investigation revealed that Amed Villa and others also stole more than $13.3 million in pharmaceuticals from the GlaxoSmithKline warehouse in Colonial Heights, Virginia, in August 2009; more than $8 million in cigarettes and a cargo trailer from a warehouse in East Peoria, Illinois, in January 2010; approximately $7.8 million in cellular telephones and multimedia tablets from the Quality One Wireless warehouse in Orlando, Florida, in January 2011, and more than $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Kentucky, in March 2011.

During each of the thefts, Amed Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into tractor trailers.  Amed Villa’s DNA was identified on items discarded during the thefts in Connecticut, Illinois, Florida and Virginia.

Amed Villa was charged with the additional thefts in the Eastern District of Virginia, Central District of Illinois, Middle District of Florida and Western District of Kentucky, respectively, and the cases were transferred to the District of Connecticut for further prosecution.

Amed Villa, a citizen of Cuba who last resided in Miami, has been detained since his arrest on May 3, 2012.  He subsequently pleaded guilty to two counts of conspiracy to commit theft from an interstate shipment and five counts of theft from an interstate shipment. 

Amaury Villa, Nunez, Marquez and Lopez also pleaded guilty to charges stemming from the Eli Lilly warehouse theft and have been sentenced.

The loss attributed to Amed Villa is approximately $90 million.  The exact amount of restitution to be ordered will be determined after further submissions by the parties.

The investigation of the Connecticut warehouse theft has been led by the FBI in New Haven and the Enfield Police Department, the investigation of the Illinois theft has been led by ATF and the East Peoria Police Department, the investigation of the Virginia theft has been led by the FBI, the investigation of the Florida theft has been led by the FBI and the Orlando Police Department, and the investigation of the Kentucky theft has been led by ATF.

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito, with the valuable assistance of members of the U.S. Attorney’s Offices for the Central District of Illinois, Eastern District of Virginia, Middle District of Florida and Western District of Kentucky.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HOWARD HAMMER, 45, of New Milford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a federal extortion charge.

According to court documents and statements made in court, in late December 2015 to early January 2016, a loan shark lent an individual approximately $1,500.  The individual was required to pay the loan shark the $1,500, plus an additional $500 in interest, within four days of the initial loan.  When the individual failed to pay the loan within four days, HAMMER, at the loan shark’s request, agreed to help the loan shark collect on the loan.

In pleading guilty, HAMMER admitted that he sent text messages to the victim that threatened harm to the victim if he failed to pay his debt.  He then took screen shots of the threatening text messages and forwarded them to the loan shark.  HAMMER and the loan shark also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.

On January 25, 2016, the victim suffered permanent bodily injury in connection with this conduct.

HAMMER pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.

Judge Arterton scheduled sentencing for February 24, 2017.

HAMMER has been detained since his arrest on May 27, 2016.

This matter is being investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad.  This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL A. PETRO, 44, of Watertown, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to approximately 11 months of imprisonment, time served, and two years of supervised release, for illegally possessing a firearm and ammunition.

According to court documents and statements made in court, on the morning of December 10, 2015, a law enforcement officer was patrolling part of the Appalachian Trail in Kent, Conn.  Posted signs in the area state that the land is National Parks Service property and is closed to hunting.  The officer observed PETRO in camouflage gear holding a Savage Arms/Stevens Model 311, 12 gauge shotgun, which was breached open and unloaded.  After the officer asked PETRO where the shotgun shells were and PETRO denied having any, the officer and her canine located two 12 gauge shotgun shells under fallen leaves approximately 20 yards away from where PETRO was standing.  A subsequent search of PETRO’s jacket revealed two additional shotgun shells.

PETRO’s criminal history includes a felony conviction for 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.

PETRO has been detained in state custody since December 15, 2015.  He has multiple unrelated state charges pending.

On June 13, 2016, he pleaded guilty to one count of unlawful possession of a firearm and ammunition by a convicted felon.

Judge Bryant ordered that PETRO must perform 200 hours of community service during his term of supervised release.

This matter was investigated by the U.S. Fish and Wildlife Service and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case was prosecuted by Assistant U.S. Attorney Hal Chen.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEVAUGHN WATSON, 23, of Bridgeport, waived his right to be indicted and pleaded guilty today in Hartford federal court 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 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.

The charge of possession with intent to distribute, and distribution of heroin, carries a maximum term of imprisonment of 20 years.  WATSON is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on February 23, 2017.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LJUDMIL KLJUSEV, M.D., 52, of Fairfield, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to distributing narcotics outside of the scope of professional practice, and health care fraud.

According to court documents and statements made in court, KLJUSEV, who operated a psychiatry practice in Milford, was a high-volume prescriber of Adderall and Xanax to patients, many of whom paid for office visits and prescriptions in cash.

Adderall, which is classified as a Schedule II drug by the DEA, is the brand name for a drug containing a combination of amphetamine and dextroamphetamine, both of which are central nervous system stimulants.  This combination of drugs is used to treat narcolepsy and attention deficit hyperactivity disorder (“ADHD”).  Xanax, which is classified as a Schedule IV drug by the DEA, is a brand name for a drug containing Alprazolam, a benzodiazepine drug.  Alprazolam is commonly used to treat anxiety disorders or panic disorders.

The investigation, which included the use of confidential witnesses and an undercover officer posing as patients, revealed that KLJUSEV prescribed the drugs without a full medical examination of the patient, provided prescriptions without confirming conditions that would medically require treatment using these drugs and dispensed prescriptions in exchange for cash to patients who display substance abuse and addiction behaviors.  KLJUSEV also directed non-physician employees to write prescriptions signed by KLJUSEV when he was out of the country.

In 2014 and 2015, KLJUSEV improperly billed private health insurers approximately $76,983 for medical services rendered when he was out of the country.

“This doctor sold controlled substances out of his office for cash, like a common drug dealer,” said U.S. Attorney Daly.  “We are finding with increasing frequency that the types of pills he distributed are contributing to drug overdose deaths.  They are incredibly dangerous if taken inappropriately and particularly toxic if combined with an opioid.  We in law enforcement are committed to prosecuting medical professionals who recklessly and illegally put these and other prescription pills on the street.  I thank our partners in this ongoing battle:  The DEA and talented members of the Tactical Diversion Squad, as well as the Milford Police Department.”

“The DEA is committed to enforcing the Controlled Substance Act (CSA) by ensuring that all registrants abide by DEA’s prescribing regulations,” said DEA Special Agent in Charge Michael J. Ferguson.  “Failure to do so increases the potential for diversion and jeopardizes the public health and safety.  DEA pledges to work with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”

KLJUSEV has been detained since his arrest on November 12, 2015.

KLJUZEV pleaded guilty to one count of conspiracy to possess with intent to distribute narcotics, which carries a maximum term of imprisonment of 20 years, and one count of health care fraud, which carries a maximum term of imprisonment of 10 years.

In a binding plea agreement, if accepted by the court, the parties have agreed that a sentence between 26 and 77 months of imprisonment is appropriate in this case.  KLJUSEV also has agreed to the forfeiture of property located at 227 Naugatuck Avenue in Milford, where his practice was based, as well as $173,095.20 in cash that was seized from his office on the day of his arrest.  He also has agreed to forfeit an additional $117,431.13 contained in his business checking account, and to pay restitution in the amount of $76,983.

Judge Thompson scheduled sentencing for February 22, 2017.

This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad, Federal Bureau of Investigation and Milford Police Department.  The DEA Tactical Diversion Squad includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.  This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Avi Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROMAN PANTOJAS, 28, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 74 months of imprisonment, followed by five years of supervised release, for gun and drug offenses.

According to court documents and statements made in court, on May 23, 2014, the ATF, DEA and Hartford Police executed a federal search warrant at PANTOJAS’s Hartford residence and seized approximately 700 baggies of heroin, two loaded handguns and approximately $2,400 in cash.  The investigation revealed that PANTOJAS, a convicted felon who is not permitted to purchase or possess firearms lawfully, had received firearms from his heroin customers.

One of PANTOJAS’s drug customers, Justin Ashline, admitted to law enforcement that he stole a firearm from his employer and sold it to PANTOJAS in exchange for approximately 20 bags of heroin and between $70 and $100 in cash. 

On July 28, 2014, PANTOJAS pleaded guilty to one count of possession of a firearm by a previously convicted felon and one count of possession with intent to distribute heroin.

Ashline also pleaded guilty and is currently incarcerated.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Connecticut State Police and Hartford Police Department.  The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TAHIR FARID, 22, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by three years of supervised release, for distributing oxycodone involved in an overdose earlier this year.

According to court documents and statements made in court, on January 3, 2016, a 20-year-old male purchased 30 oxycodone pills from FARID in exchange for $900.  He then consumed some of those pills, as well as other substances, including Xanax.  On January 5, 2016, the 20-year-old male was found unresponsive at a friend’s residence in Weston.  He remains unresponsive, has no brain activity and is currently receiving care in a nursing home.

The investigation revealed that, prior to the victim’s overdose, Ryan Looney, also of Hamden, supplied FARID with oxycodone pills.  FARID then distributed the pills to the victim.

FARID was arrested on February 22, 2016.  On April 26, he pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.

Looney pleaded guilty to the same charge and is scheduled to be sentenced on December 6.

Judge Chatigny ordered FARID, during his three-year term of supervised release, to perform 120 hours of community service, and requested that the community service be directed at educating school-aged children about the dangers of using opioids.

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.

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

This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.

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, announced that FRANK PINA, 57, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 87 months of imprisonment, followed by four years of supervised release, for distributing fentanyl-laced cocaine that led to three overdose deaths in New Haven in June.

According to court documents and statements made in court, on June 23, 2016, 17 individuals in New Haven overdosed after consuming narcotics.  Three of the victims died.  An investigation conducted by the DEA and New Haven Police Department revealed that many or all of the victims believed the substance they were consuming was cocaine.  However, DEA laboratory testing indicated the cocaine was laced with fentanyl, a powerful opioid that can be at least 50 times more powerful than heroin.

The investigation revealed that PINA supplied drugs through various middlemen to several of the individuals who overdosed, including the three who died, on June 23, 2016.  The investigation further revealed that the day before the overdoses occurred, PINA was discharged from the hospital after having overdosed on the same drugs that he subsequently distributed.

“This defendant sold cocaine laced with fentanyl creating a lethal cocktail that tragically stole three lives,” said U.S. Attorney Daly.  “He himself spent three days in the hospital having overdosed on the same toxic mixture.  His crime is all the more shameful as he was fully aware of the acute danger of the cocaine he was peddling.  His actions reflect a callous disregard for human life and were motivated solely by profit.  I commend the DEA Task Force, the New Haven Police and all the emergency medical personnel who responded on that terrible day in June.  Their swift actions saved lives that day and their ongoing investigative work during this opioid epidemic continues to save lives.”

“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so in this case given the number of victims in less than one day,” said Special Agent in Charge Ferguson.  “Those suffering from the disease of fentanyl and heroin addiction need access to treatment and recovery.  But, those responsible for distributing these lethal drugs to the citizens of New Haven need to be held accountable for their actions.  In response to the ongoing opioid epidemic, DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”

PINA has been detained since his arrest on June 27.  On August 4, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, controlled substances.

PINA’s criminal history includes multiple state felony convictions, and a federal felony drug conviction in 2004.

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

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.

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 CHRISTOPHER SCULL, 37, of Naugatuck, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release.

According to court documents and statements made in court, from approximately June 2011 to January 2014, SCULL, while employed as an insurance agent with Bankers Life & Casualty Company, stole nearly $120,000 from seven clients.  Most of the money was stolen from two vulnerable victims.

As part of the scheme, SCULL induced one victim to make withdrawals from her annuity and give the money to SCULL by falsely representing that the victim owed certain fees in connection with the account.  SCULL caused the victim to submit an annuity withdrawal form and, after the victim received a check in the mail from Bankers Life, SCULL directed the victim to deposit the money into her account and write SCULL a personal check.  SCULL then used the money for his own benefit.

On December 16, 2015, SCULL pleaded guilty to two counts of mail fraud.

Chief Judge Hall ordered SCULL to pay restitution in the amount of $119,965.38.

This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Susan L. Wines.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DERRICK GILLIAM, 30, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in Bridgeport to 121 months of imprisonment, followed by three years of supervised release, for participating in an armed robbery spree in 2014.

According to court documents and statements made in court, on April 26, 2014, GILLIAM, Lancelot Supersad and others committed an armed robbery of the CVS Pharmacy on Grasmere Avenue in Fairfield, stealing approximately $2,376.  On May 3, 2014, GILLIAM, Supersad and others attempted an armed robbery of the Mobil Gas station on Noble Avenue in Bridgeport.  On May 10, 2014, GILLIAM, Supersad and others committed an armed robbery of a Webster Bank branch on Main Street in Bridgeport, stealing approximately $4,170.  On June 1, 2014, GILLIAM, Supersad and others committed an armed robbery of a Pizza Hut on Boston Avenue in Bridgeport, stealing approximately $250.  On June 26, 2014, GILLIAM, Supersad, Anthony Santiago and others committed an armed robbery of the Residence Inn on Bridgeport Avenue in Shelton, stealing approximately $200.  On July 2, 2014, GILLIAM, Supersad, Santiago and others attempted an armed robbery of the Sikorsky Financial Credit Union on Oronoque Lane in Stratford.  Also on July 2, 2014, GILLIAM, Supersad, Santiago and others committed an armed robbery of the TD Bank located on Post Road East in Westport.

GILLIAM brandished and pointed what appeared to be a handgun at employees during each of the seven robberies.

Chief Judge Hall ordered GILLIAM to pay $12,100 in restitution.

GILLIAM has been detained since his arrest on July 3, 2014.  On July 28, 2016, he pleaded guilty to one count of conspiracy to affect commerce by robbery.

Supersad and Santiago pleaded guilty to the same charge and await sentencing.

This investigation was conducted by the Federal Bureau of Investigation and the Westport, Shelton, Fairfield, Stratford and Bridgeport Police Departments.  The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAUL CARLOS MONARCA-GONZALEZ, 40, of Waterbury, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.

The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power.  SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items.  Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items.  SNAP benefits may not lawfully be exchanged for cash under any circumstances.  The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.

According to court documents, MONARCA worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury.  From November 2014 until June 2016, MONARCA and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items.

Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits.  However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.

MONARCA has been detained since his arrest on August 18, 2016.  He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 1, 2017, at which time he faces a maximum term of imprisonment of five years, a fine of up to $250,000 fine and restitution.

This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL COLON, also known as “Paul Kane,” 28, of New Haven, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 108 months of imprisonment, followed by five years of supervised release, for distributing heroin and crack cocaine.

According to court documents and statements made in court, COLON and Shawn Miller operated a New Haven area narcotics distribution ring.  The investigation revealed that members of the ring took orders over a cellphone from drug customers in several shoreline communities for quantities of heroin and crack cocaine, and then delivered the drugs by car.

On June 29, 2016, COLON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack cocaine”).  He is detained.

Miller, of Hamden, pleaded guilty to the same charge and, on November 1, 2016, was sentenced to 90 months of imprisonment.

This matter has been investigated by the FBI’s New Haven Safe Streets Task Force in cooperation with the Drug Enforcement Administration and the New Haven, West Haven, Milford, Hamden and other local police departments, and the Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Jennifer R. Laraia. 

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAYMOND MORALES, also known as “Freddy,” 33, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 84 months of imprisonment, followed by three years of supervised release, for his role in a scheme to obtain oxycodone through fraudulent prescriptions.

According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area.  As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions.  Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals.  The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut.  Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.

MORALES recruited runners to fill fraudulent prescriptions.  The investigation also revealed that he had a close associate who was employed as a pharmacy technician at a pharmacy in New Haven and assisted MORALES in filling the fake prescriptions.

The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills.  Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.

Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid.  Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.

On June 16, 2016, MORALES pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.

Eleven individuals have been charged as a result of the investigation.

The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.

This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARYANNE STEPHENS, 68, of Ireland, formerly of Rocky Hill, Conn., pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of theft of public money for stealing Social Security retirement benefits that had been deposited into her deceased mother-in-law’s bank account.

According to court documents and statements made in court, STEPHENS’ mother-in-law began receiving Social Security retirement benefits in 1971.  Her mother-in-law died in October 1998.  However, approximately $204,000 in Social Security retirement benefits were directly deposited into her mother-in-law’s bank account after her death.

In pleading guilty, STEPHENS admitted that, from approximately March 2004 to December 2010, she forged her mother-in-law’s signature on bank checks in order to fraudulently obtain approximately $126,000 in Social Security retirement benefits that were deposited into her mother-in-law’s bank account after her mother-in-law had died.

Chief Judge Hall scheduled sentencing for February 28, 2017, at which time STEPHENS faces a maximum term of imprisonment of 10 years, a fine of up to $250,000 and restitution in the amount of $125,938.

STEPHENS surrendered her passport and has been released on a $200,000 bond since her arrest on April 20, 2016.

This matter is being investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK W. IRVIN, 65, of Meriden, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 180 months of imprisonment, followed by 15 years of supervised release, for producing child pornography. 

According to court documents and statements made in court, on multiple occasions between approximately 2012 and August 2015, IRVIN engaged in sexual acts with three males who were under the age of 18.  He also installed and operated a video camera and a digital video recording device at his residence to record the sexual activity.

On September 8, 2015, law enforcement officers conducted a search of IRVIN’s residence and seized several computers, hard drives, electronic storage media and the digital video recording device.  During a forensic analysis of the seized evidence, law enforcement found videos that depicted IRVIN engaged in sexual acts with two of the three males.  Law enforcement also found videos and images of naked minors that were taken with a hidden camera in IRVIN’s bathroom.

IRVIN has been detained since his arrest on September 18, 2015.  On August 31, 2016, he pleaded guilty to one count of production of child pornography.

IRVIN also is charged with related state offenses.

This matter was investigated by the Meriden Police Department, Homeland Security Investigations, and Connecticut State Police.  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.

This Thanksgiving, particularly after our highly-contested presidential election, is a time to reflect on our country’s bedrock principles.   These values include our commitment to tolerance and cultural understanding, our celebration of diversity and our respect for our fellow citizens, no matter their race, religion, ethnicity, sexual orientation or political viewpoint.  Over the last year and particularly the last few weeks in Connecticut and throughout the country, we have seen these values increasingly give way to hatred, intolerance and bigotry.

Recently, such incidents have escalated.  In New Haven, swastikas were painted on walls and doors of Wilbur Cross High School.  In Danbury, swastikas were painted on a home and a car.  In Ridgefield, a synagogue received mail with swastikas and pictures of Nazis.  In East Windsor, a video surfaced of an individual dressed in Ku Klux Klan garb riding a motorcycle around a bonfire.  In Windsor Locks, a Jewish man was verbally harassed because of his faith.  In Meriden, two men attacked a man who held a sign supporting the President-elect.  There are reports of Muslim children and children of immigrants being bullied in schools.  And just over one year ago, a man fired four bullets from a high-powered rifle into the Baitul Aman Mosque in Meriden. He was subsequently convicted of a federal hate crime.  

Last week, the FBI released its statistics on hate crimes committed in 2015.  In Connecticut, 44 law enforcement agencies reported 93 hate-related incidents.  Nationally, there were more than 7,000 victims of such crimes.  These numbers are deeply sobering for all Americans.  Equally disturbing, the FBI report showed a 67 percent increase in hate crimes committed against Muslim Americans as well as increases in these crimes against Jewish people, African Americans and LGBT individuals.  Overall, reported hate crimes increased by six percent from the prior year – a number that does not account for those hate crimes that may go unreported out of the victims’ shame, fear or desire not to stand out further and bystanders’ belief that others will report the incident.

The Connecticut United States Attorney’s Office, together with local, state and federal law enforcement, is committed to enforcing the broad array of hate crimes laws that protect vulnerable minorities.  Last month marked the seventh anniversary of one of those laws:  The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act.  This landmark statute was named for two men who were killed for the most un-American of reasons – because they were different from their attackers – Matthew Shepard in his sexual orientation and James Byrd Jr. in his race.  This Act is just one of the tools available to law enforcement and prosecutors working to combat any discriminatory or violent acts that erode our diverse democracy.

But we cannot act on incidents that we do not know about, and we cannot understand the true scope of the problem without accurate reporting.  My office is encouraging those local law enforcement agencies who do not participate in reporting hate-related incidents to the FBI to join the 95 agencies statewide that do.  We are also training local law enforcement officers about hate crimes laws and cultural competency so that they are better equipped to assess situations they may encounter.

Above all, I ask each of you to take a stand against hate.  Serve as an ally if you witness harassment or, worse, violence against your fellow citizens.  Record video of incidents that can be used for investigations.  And most importantly, report any incidents to your local police department or to the FBI.  Your vigilance can help us ensure the freedom to which all Americans are entitled.

Deirdre M. Daly
U.S. Attorney, District of Connecticut
November 23, 2016

 

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RUDY HERNANDEZ, 43, of New London, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 34 months of imprisonment, followed by three years of supervised release, for distributing heroin involved in an overdose earlier this year.  This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, on April 12, 2016, Groton Town Police responded to a report of a medical emergency involving a 25-year-old male.  The victim, who had used heroin, was transported to the hospital where he was pronounced deceased.  The investigation, which has included witness interviews and the review of cellphone records and text messages, revealed that the victim had arranged to purchase heroin from an individual who then acquired the heroin from HERNANDEZ and sold it to the victim.

On April 14, 2016, New London Police and other law enforcement conducted a search of HERNANDEZ’s residence and seized heroin, cocaine and multiple cellular telephones. 

HERNANDEZ has been detained since his arrest on April 20.  On July 6, 2016, he pleaded guilty to one count of distribution of heroin.

This matter has been investigated by the DEA’s New Haven Tactical Diversion Squad and the Town of Groton Police Department.  The case is being 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, announced that JOSEMANUEL RIOS, also known as “Jay,” 40, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl.

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

According to court documents and statements made in court, on February 25, 2016, a male and female overdosed at a motel in Enfield.  The overdoses were not fatal.  In the motel room, investigators found five wax folds that contained fentanyl.  RIOS was identified as the source of the drugs ingested by the victims.  On February 26, 2016, a search of an East Hartford motel room that RIOS was renting revealed approximately 200 bags of fentanyl stamped with the same image found on the bags in the Enfield motel room, and 13 bags of heroin stamped with a different image.

Judge Meyer scheduled sentencing for February 14, 2017, at which time RIOS faces a maximum term of imprisonment of 20 years.

RIOS has been detained since his arrest on February 26, 2016. 

This matter has been investigated by the DEA’s New Haven Tactical Diversion Squad and the Enfield Police Department.  This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

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, announced that BRITTANY ESPOSITO, 27, of Wallingford, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of distribution of 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, on May 14, 2016, Old Saybrook Police and emergency medical personnel responded to a report of a suspected overdose at an apartment on Main Street in Old Saybrook.  The victim, a 26-year-old male, was pronounced deceased at the scene.  Investigators seized the victim’s iPhone, one empty wax paper fold and several syringes.

The investigation, which has included the analysis of numerous text messages, revealed that ESPOSITO purchased heroin for the victim on credit and then provided the heroin to the victim on May 13, 2016.

ESPOSITO was arrested on June 16, 2016. 

Judge Covello scheduled sentencing for February 9, 2017, at which time ESPOSITO faces a maximum term of imprisonment of 20 years.

ESPOSITO is released on bond pending sentencing.

This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Old Saybrook Police Department, with the support and assistance of the Middlesex State’s Attorney’s Office.  This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAMON GOMEZ, also known as “B.I.,” 40, of Uncasville, pleaded guilty today in New Haven federal court to sex trafficking of a minor and heroin distribution offenses.

According to 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 GOMEZ, 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.

GOMEZ was arrested on state charges on June 1, 2016.

“Two of our office’s highest priorities are aimed at protecting our youth:  Rooting out child sex trafficking and stemming the opioid abuse and overdose epidemic,” said U.S. Attorney Daly.  “This case tragically and maddeningly combines the two.  I thank our federal partners in these efforts, notably the DEA and HSI, and the Groton Police Department and Regional Community Enhancement Task Force for their investigative work in this matter.  All are working tirelessly to save the most vulnerable among us from abuse and exploitation.”

GOMEZ pleaded guilty to one count of sex trafficking of a minor, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and one count of possession with intent to distribute heroin, an offense that carries a maximum term of imprisonment of 20 years.

GOMEZ is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on February 10, 2017.  He has been detained since his arrest.

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

The investigation is being conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Town of Groton Police Department and the Regional Community Enhancement Task Force.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES BARNES, 34, of Stamford, pleaded guilty today in New Haven federal court to one count of possession of a firearm by a previously convicted felon.

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 is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on February 10, 2017, at which time he faces a maximum term of imprisonment of 10 years.

BARNES has been detained December 29, 2015.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FREDDIE GONZALEZ, 34, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 33 months of imprisonment for violating the conditions of his supervised release that followed a 2007 conviction for drug and firearm offenses.

According to court documents and statements made in court, on February 9, 2007, GONZALEZ was sentenced in New Haven federal court to 235 months of imprisonment, followed by four years of supervised release, for possession with the intent to distribute five grams or more of cocaine base (“crack cocaine”), and unlawful possession of a firearm as a previously convicted felon.

GONZALEZ had been charged after an investigation into narcotics trafficking and associated violence being committed by the “South Marshall Street Crew” in Hartford.  GONZALEZ, who had prior felony convictions for both possession and sale of narcotics, and unlawful possession of a firearm, was arrested on October 12, 2005, when he was found in possession of approximately 9.5 grams of crack cocaine and a loaded semi-automatic 9-millimeter pistol.

Due to changes in the federal crack cocaine sentencing guidelines, GONZALEZ twice had his sentence reduced.  In August 2008, GONZALEZ’s sentence was reduced to 188 months of imprisonment and, in November 2011, his sentence was reduced to 130 months of imprisonment.

GONZALEZ was released from federal prison in September 2015 and began serving his four-year term of supervised release.

In May 2016 and again in July 2016, GONZALEZ was arrested on state drug charges.  He subsequently received a two-year sentence in state court on a conviction for sale of narcotics.

Judge Covello ordered GONZALEZ to serve the 33-month federal sentence after he completes his two-year state sentence.  GONZALEZ will serve an additional two years of supervised release when he is released from federal prison.

This matter was investigated by the Hartford Police Department, Connecticut State Police and U.S. Probation Office.  The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.

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, announced that TEDDY STUART LOPEZ, JR., also known as “Chico” and “Junior,” 20, of Waterbury, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute and distribution of 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 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, who had a history of substance abuse, 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 most 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, LOPEZ possessed four bundles of heroin.  A subsequent search of LOPEZ’s residence revealed 15 bundles of heroin, $1,600 in cash, a grinder, a digital scale, cutting agents, cellular telephones, and drug packaging material.

LOPEZ is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 18, 2017, at which time he faces a maximum term of imprisonment of 20 years.

LOPEZ is released on bond and residing in Rhode Island pending sentencing.

This matter is being 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 is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEFFREY HARRISON, also known as “Biscuit,” 36, and CHRISTOPHER HILTON, also known as “C.J.,” 34, both of New Haven, have been sentenced by U.S. District Judge Robert Chatigny in Hartford for their involvement in a New Haven cocaine trafficking organization.  HARRISON was sentenced yesterday to 30 months of imprisonment, followed by three years of supervised release, and HILTON was sentenced today to 36 months of probation.

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 Lopez and Omar Polanco.  The investigation revealed that Lopez and Polanco were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers, including HARRISON and HILTON.  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 Lopez, Polanco, HARRISON, HILTON and six other individuals with various narcotics offenses.  All of the defendants pleaded guilty.  Lopez and Polanco 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 R. Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a grand jury in Bridgeport has returned a 29-count indictment charging JARED DYLAN SPARKS, 33, of Ardmore, Okla., and JAY WILLIAMS, 45, of Griswold, Conn., with offenses related to a scheme to steal trade secrets from a Connecticut-based defense contractor.  The indictment was returned on November 3.  SPARKS was arrested on November 7 and WILLIAMS was arrested on November 8.

According to court documents and statements made in court, SPARKS, an electrical engineer, and WILLIAMS, an electronic technician, both worked at LBI Inc., a Connecticut-based defense contractor that designs and builds, among other things, unmanned underwater vehicles for the U.S. Navy Office of Naval Research.  From January 4, 2010, until December 2, 2011, SPARKS was employed by LBI as the Lead Electrical Engineer for design, prototyping and testing for prototypes of unmanned vehicles.  From May 10, 2010, until November 23, 2011, Williams was employed by LBI as an Electro-Mechanical Technician tasked with the fabrication, installation, testing and operation of various prototypes of unmanned vehicles.

During the course of their employment with LBI, SPARKS and WILLIAMS collaborated with employees of Charles River Analytics, a Massachusetts-based software company that developed software to be integrated into LBI’s unmanned underwater vehicles.  In late 2010 and early 2011, Charles River Analytics sought to expand into the hardware business and eventually agreed with the Office of Naval Research that it would complete the testing for a number of the unmanned vehicles designed and developed by LBI.  However, Charles River Analytics had never done that work before and had no staff that could carry out that work.  Sometime after April 2011, SPARKS and WILLIAMS began exploring employment with Charles River Analytics, and were eventually hired by that company in the fall of 2011.

Information obtained from the execution of various search warrants revealed that beginning in at least May 2011 and continuing until November 2011, WILLIAMS and SPARKS, without authorization, uploaded LBI proprietary information to accounts in Dropbox, a cloud-based storage application.

SPARKS and WILLIAMS ended their employment with LBI in December 2, 2011, and November 23, 2011 respectively, and both began working with Charles River Analytics on January 3, 2012.  SPARKS and WILLIAMS continued to possess stolen trade secrets belonging to LBI after the end of their employment with LBI.  During the course of their employment at Charles River Analytics, they both continued to work on at least one of the unmanned underwater vehicles that LBI had designed and developed.

“Connecticut’s defense contractors are critical to our country’s national security,” said U.S. Attorney Daly.  “The U.S. Attorney’s Office is committed to working with our law enforcement partners to ensure that intellectual property is protected, and that those who profit from stealing trade secrets are prosecuted.”

“The need to protect the intellectual property of the U.S. Department of Defense contractors is now more important than ever,” said Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office.  “The theft of defense contractors’ trade secrets in particular, poses a grave threat to our national economic security and harms the Department of Defense’s investment in research and development.  DCIS remains committed to working with our federal law enforcement partners and the U.S. Department of Justice to ensuring those who actively steal our nation’s trade secrets are prosecuted.”

The indictment charges SPARKS and WILLIAMS with one count of conspiracy to steal, upload, transmit and possess stolen trade secrets, an offense that carries a maximum term of imprisonment of five years.  The indictment also charges SPARKS with seven counts of theft of trade secrets, seven counts of upload of trade secrets, two counts of transmission of trade secrets and five counts of possession of stolen trade secrets.  WILLIAMS is also charged with seven counts of possession of stolen trade secrets.  If convicted, the defendants face a maximum term of imprisonment of 10 years on each count.

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

Both defendants are released on bond pending trial.

This matter is being investigated by the Defense Criminal Investigative Service and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss and Trial Attorney Brian Resler from the Computer Crimes and Intellectual Property Section of the U.S. Department of Justice, Criminal Division.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT HARRIS, also known as “Skully Mack,” 20, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by 6 years in supervised release, for gang-related assault and drug distribution offenses.

According to court documents and statements made in court, HARRIS was a member of 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.  On December 23, 2014, HARRIS and another RSGB member, Christopher Graham, a.k.a. “Ugg,” committed a violent assault of an individual over a .40 caliber pistol that the victim allegedly stole from him.  Graham had called HARRIS to the scene after realizing the victim had stolen the gun.  Shortly after HARRIS arrived, the victim showed them where he had hidden the gun.  HARRIS then retrieved the gun and pistol whipped the victim with it.

In addition, in June 2014, HARRIS sold approximately 10 grams of crack cocaine to an individual working with law enforcement.

On September 30, 2015, a federal grand jury in New Haven returned a 34-count indictment charging HARRIS, Graham and four other individuals with various racketeering, violent crimes in aid of racketeering, firearms, money laundering and narcotics distribution offenses.  Other RSGB members and associates have been charged and convicted separately in state and federal courts in Connecticut and Maine.

HARRIS has been detained since his arrest on October 1, 2015.  On February 3, 2016, he pleaded guilty to one count of assault in aid of racketeering and one count of possession with the intent to distribute crack cocaine.

Graham pleaded guilty to one count of assault in aid of racketeering and one count of possession with the intent to distribute crack.  On August 24, 2016, he was sentenced to 66 months of imprisonment and five years of supervised release.

This ongoing 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 M. Spector and Peter D. Markle.  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 U.S. District Judge Stefan R. Underhill today ordered Meriden-based SRC CONSTRUCTION, INC. to pay a $250,000 fine for filing a false tax return.

According to court documents and statements made in court, SRC CONSTRUCTION, a real estate development and construction management firm, employed an internal accounting department that handled the general ledger, journal entries and bank accounts for the business, including the receipt and payment of invoices.  At least one individual employed by the company was responsible for overseeing and coordinating the business and financial matters for the company’s owner.  That individual and others under the individual’s control reviewed payments made by the company to employees, vendors and others, and directed how the items should be expensed.  The individual instructed others that most, if not all, invoices be paid out of company funds, including a series of expenses that the individual knew were not deductible business expenses.  The individual, who also was responsible for providing to the company’s outside accountants all information to prepare audited financial statements and tax returns, knowingly provided to the accountants a substantial number of non-deductible expenses knowing that they were non-business expenses.

In February 2006, SRC CONSTRUCTION willfully made and subscribed a false corporate tax return, a 2004 Form 1120 for the fiscal year ending April 30, 2005, that overstated expenses.  As a result, for the 2004 tax year, the company failed to report corporate income totaling $296,642, resulting in tax loss of $112,609.

On July 15, 2016, SRC CONSTRUCTION pleaded guilty to one count of filing a false tax return.

SRC CONSTRUCTION has paid the $250,000 fine, as well as the identified back taxes due of $112,609.  The company also itemized for the court the various accounting and other internal changes made as a result of the investigation that are intended to ensure future tax and accounting compliance.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.  The case was prosecuted by Assistant U.S. Attorneys Christopher Schmeisser and Jennifer Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROMANE ST. CHRISTOPHER McKENZIE, also known as “Wookie,” “Rude” and “Rude Boy,” 24, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.

According to court documents and statements made in court, on November 18, 2014, a case worker with the Connecticut Department of Children and Families informed the Enfield Police Department that a 15-year-old girl was advertising prostitution services on Backpage.com.  The advertisement listed the girl’s location as Enfield.  Later that day, Enfield police contacted the number in the advertisement and engaged in a ruse negotiation to purchase the girl’s services.  At the conclusion, the police were told to go to a local motel where they encountered the minor victim in a room.  The room contained evidence of prostitution and was rented by McKENZIE.  McKENZIE, who was present at the motel, was arrested at that time.

The investigation revealed evidence that McKENZIE knew that the minor victim was 15-years-old, that he had paid for Backpage.com advertisements on behalf of the minor victim and others, and that he trafficked the minor victim and others at motels in Enfield and Windsor Locks.  The investigation included analysis of numerous text messages between McKENZIE and the minor victim, and between the minor victim and prospective prostitution clients.  The investigation also revealed that McKENZIE sold crack cocaine to the minor victim.

McKENZIE has been detained since his arrest.  On August 2, 2016, he pleaded guilty to one count of sex trafficking of a minor.

McKENZIE, a citizen of Jamaica, faces immigration proceedings when he is released from prison.

This matter was investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of the Connecticut Department of Children and Families.  The case was prosecuted by Assistant U.S. Attorneys Vanessa Richards and David Novick.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN GOINS, 36, last residing in Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, on June 26, 2014, law enforcement received information that GOINS, a convicted felon, was operating a vehicle that had a firearm in the glove compartment.  A Bridgeport police officer stopped the vehicle after it exited I-95 in Bridgeport.  GOINS was arrested after a search of the glove compartment revealed a loaded Ruger LCR Revolver, .38 caliber Special.

GOINS’ criminal history includes felony convictions for robbery, larceny and marijuana trafficking offenses.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

GOINS has been detained since his arrest.  On May 6, 2016, he pleaded guilty to one count of possession of a firearm by a convicted felon.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department, New Britain Police Department, and Connecticut Statewide Narcotics Task Force.  The case was prosecuted by Assistant U.S. Attorney Rahul Kale.