District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT CHADRONET, 38, formerly of East Providence, R.I., pleaded guilty today in Hartford federal court to one count of bank robbery and admitted that he committed two bank robberies in Connecticut and one in Massachusetts.

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

CHADRONET is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 28, 2016, at which time CHADRONET faces a maximum term of imprisonment of 20 years.

CHADRONET has been detained since September 10, 2015, when he was arrested on state charges related to a bank robbery that occurred in Milford on August 18, 2015.  State charges against CHADRONET for that robbery are pending.

At the time of his criminal conduct CHADRONET was on federal supervised release for a prior bank robbery conviction.  He faces supervised release violation proceedings in the District of Rhode Island.

This matter has been investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department, Milford Police Department and Wareham (Mass.) 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 MIGUEL SOTO, also known as “Fat Boy,” 31, of New Haven, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 34 months of imprisonment, followed by three 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 “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.

SOTO allowed Vasquez and his associates to use his residence to package heroin for street-level distribution.

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.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN J. SIMON, JR., also known as “Buzzy Simon,” 69, of Stafford Springs, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of mail fraud and one count of structuring currency transactions. 

According to court documents and statements made in court, from March 2009 to August 2010, SIMON, a Vietnam War veteran, engaged in a scheme to defraud four military veterans by representing that, in exchange for money, he could assist them in obtaining increased benefits from the Department of Veterans Affairs (“VA”).  The veterans suffer from service-related disabilities and/or are chronically ill.  SIMON falsely represented that the money the veterans provided to him would be used to pay for the services of an attorney or other expenses.  With respect to one veteran, SIMON also falsely told him that he would assist the veteran in obtaining Social Security benefits. 

SIMON did not initiate any claims for the four veterans and he did not incur any legal or other expenses on behalf of the veterans.  Rather, he kept the money for his personal use.

As part of the plea agreement, SIMON has agreed that he defrauded 11 other military veterans and one non-veteran by representing that he could obtain new or increased benefits from the VA or Social Security Administration.

In total, SIMON defrauded 16 victims of approximately $525,431.

SIMON also structured approximately $36,000 in cash deposits into his bank account from October 2009 to June 2010.  The funds structured were payments he had received from the fraud scheme.  At the time, SIMON knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting his financial transactions in amounts less than $10,000.01, he intended to evade the transaction reporting requirements.

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

SIMON was arrested on a criminal complaint on May 15, 2013.

Judge Shea scheduled sentencing for January 10, 2017, at which time SIMON faces a maximum term of imprisonment of 30 years.

SIMON has agreed that $210,085.58 that the IRS seized from his bank account in October 2010 will be used to pay restitution to the victims of his criminal conduct.

SIMON was released on bond pending sentencing.

This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division and the U.S. Department of Veterans Affairs, Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERIC LONERGAN, 23, of Washington, D.C., was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing controlled substances that caused several Wesleyan University students to overdose in 2015.

According to court documents and statements made in court, LONERGAN and Zachary Kramer were students at Wesleyan in Middletown, Connecticut.  Beginning in approximately November 2013, LONERGAN began selling a substance he referred to as both “Molly” and MDMA to students on or in the vicinity of the Wesleyan campus.  LONERGAN regularly sold Molly from his dorm room, charging approximately $20 per .1 gram, or $200 per gram.  LONERGAN also counseled students on how to ingest Molly and other psychedelic drugs.  At one point in 2014, after the administration at Wesleyan sent out a campus-wide communication warning of the dangers of ingesting controlled substances like Molly, LONERGAN responded by distributing a pamphlet instructing students on the use of psychedelic drugs.

In approximately September 2014, Kramer began purchasing what he believed to be Molly from LONERGAN and distributed it to students at Wesleyan.  At times, LONERGAN used a chemical test on the substance he sold Kramer to prove to him that he was selling Kramer high-quality MDMA.

In September 2014, LONERGAN was the source of Molly for several students who were planning a “rolling” party at Wesleyan, which is a party where guests ingest Molly.  He provided several grams of a substance he represented to be MDMA, in bulk, and another student then distributed it to students in .1 gram capsules.  At this party, which occurred on September 13, 2014, several students became ill, some seriously, after ingesting the substance provided by LONERGAN.  Two of these students were transported to the hospital.  After these overdoses, LONERGAN sent electronic communications to several students assuring them that the substance he provided to them was indeed MDMA.  One of the students who became ill at the party saved one of the capsules she had purchased and turned it over to the Middletown Police in February 2015.  A lab test on the contents of that capsule revealed that it did not contain MDMA, but contained two other controlled substances: AB Fubinaca, a Schedule I controlled substance, and 6-MAPB, an analogue of MDMA.

In approximately December 2014, Kramer became the primary supplier of MDMA at Wesleyan.  Kramer typically sold the MDMA in .1 gram quantities for $20 each or he sold it in 5-gram and 10-gram quantities for a discount, charging $100 or more, depending on the customer and the quantity.  During this time period, LONERGAN still supplied Kramer with bulk quantities of MDMA.  In approximately January 2015, Kramer purchased approximately 45 grams of MDMA from LONERGAN.  Kramer broke that quantity into 5 and 10-gram bags and distributed those bags to other students who planned to break down the MDMA into .1 gram capsules, sell those capsules to other Wesleyan students, and pay Kramer for the quantity of the drug he had provided to them.

On February 21, 2015, 11 individuals, including 10 Wesleyan students, overdosed on a substance they believed was MDMA, and many were transported to the hospital.  Two of the students were in critical condition, and one of the students had to be revived after his heart stopped.  All of these students obtained the purported MDMA through individual distributers who were supplied directly by Kramer. 

Although Kramer and some of his distributers destroyed the substance identified as Molly that they had in their possession, one of the distributers did not, and that substance was seized by law enforcement officers and sent to the toxicology laboratory for testing.  Laboratory analysis confirmed that the powdered substance contained AB Fubinaca.

LONERGAN and Kramer were arrested by federal authorities on May 22, 2015.  On November 30, 2015, LONERGAN pleaded guilty to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”). 

Kramer pleaded guilty to the same charge on November 12, 2015.  On May 5, 2016, he was sentenced to eight months of home confinement with outpatient drug treatment, four months of imprisonment, three years of supervised release and a $10,000 fine.

This matter was investigated by the Drug Enforcement Administration and the Middletown Police Department, with the assistance of the State of Connecticut’s Forensic Science Laboratory.

U.S. Attorney Daly acknowledged the support and assistance of the Middlesex State’s Attorney’s Office, which has prosecuted several state cases stemming from these overdose events.

The federal case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who was cross-designated as a Special Assistant U.S. Attorney in this matter.

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, announced that DONALD BIAGI, Jr., 55, of Fairfield waived his right to indictment and pleaded guilty today in Hartford federal court to one count of tax evasion.

According to court documents and statements made in court, BIAGI is the sole owner of Don Biagi Landscaping.  BIAGI, through Don Biagi Landscaping, generated business income by providing landscaping and snowplowing services to commercial and residential customers in Fairfield County.  BIAGI regularly negotiated client checks at banks for cash rather than depositing the checks into his business bank accounts.  Between 2008 and 2010, BIAGI cashed approximately 574 client checks, ranging in amounts from $10.52 to $15,604.50, in the total amount of approximately $848,750.

BIAGI, who acted as his own bookkeeper, did not disclose to his tax return preparer the client checks he cashed and some of the client checks he deposited into his business account between 2008 and 2010.  As a result, a total of $1,321,305 in business gross receipts were not reported on BIAGI’s federal tax returns for 2008, 2009, and 2010, resulting in his substantially under-reporting his taxable income.  BIAGI failed to report approximately 62 percent of his business’s gross receipts in 2008, approximately 47 percent of the gross receipts in 2009, and approximately 60 percent of the gross receipts in 2010.

When he is sentenced by Senior U.S. District Judge Alfred V. Covello, BIAGI faces a maximum term of imprisonment of five years and a fine of up to $250,000.  BIAGI also has agreed to repay the U.S. Treasury $445,579 in restitution for the taxes he failed to pay, and additional penalties and interest that have accrued on his unpaid taxes.

A sentencing date is not yet scheduled.

This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY PEARLMAN, 49, of Edgewood, N.J., was arrested today on a federal criminal complaint that charges him with engaging in a kickback scheme that defrauded federal healthcare programs.

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

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

It is alleged that the pharmaceutical company paid one Connecticut healthcare provider who participated in these sham Speaker Programs a total of approximately $83,000 in illegal kickbacks in order to induce the provider to prescribe the company’s fentanyl spray over similar medications.  PEARLMAN authorized these payments.

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

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

PEARLMAN appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $200,000 bond.

The charge of paying or receiving kickbacks in relation to a federal healthcare program carries a maximum term of imprisonment of five years and a fine of up to $250,000. 

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VESCERA, 60, of Dana Point, Calif., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for false advertising and misusing a government seal in connection with the provision of mortgage modification services.

According to court documents and statements made in court, VESCERA was the President of First One Lending Corporation (“First One”) in San Juan Capistrano, Calif.  During the peak of the national mortgage crisis, VESCERA and First One offered home mortgage loan modification assistance to homeowners across the United States, including in Connecticut, who were having difficulty repaying their mortgage loans.

From approximately February 2010 until approximately February 2012, VESCERA and First One solicited clients through television advertisements and infomercials produced by National Media Connection of New London, Conn.  These advertisements touted the mortgage modification services of an entity known as the National Mortgage Help Center (“NMHC”).

Matthew Goldreich, of East Lyme, Conn., had incorporated NMHC approximately two months after the U.S. Treasury Department announced that it would partner with financial institutions to reduce struggling homeowners’ monthly mortgage payments through a program called the Home Affordable Modification Program (“HAMP”).  HAMP consisted of a number of incentives to encourage homeowners and financial institutions to modify existing loans on owner-occupied primary residences in order to help keep these properties out of foreclosure.

NMHC advertisements misrepresented NMHC as being affiliated with or regulated by the U.S. government and falsely stated that NMHC “help[ed] thousands of homeowners every day.”  When viewers called the advertised telephone number, they were connected not to NMHC, which operated only as a front and did not provide mortgage modification services for any homeowners, but to clients of National Media Connection, including First One.

VESCERA and First One used NMHC’s name and logo in First One’s promotional materials, application package and other documents.  VESCERA also instructed First One employees to introduce themselves to prospective clients as “with the National Mortgage Help Center.”

First One also misrepresented its status with the U.S. Department of Housing and Urban Development (“HUD”).  First One employees were instructed to inform homeowners that “[w]e’re a HUD approved lender and we represent the government loan modification programs.”  In addition, certain of First One’s forms claimed that the company provided “HUD . . . Housing Counseling assistance” and bore HUD’s seal.  In truth, First One had no affiliation with the government mortgage loan assistance programs and was not licensed or approved by HUD for housing counseling or home mortgage loan modification services.

Through this scheme, 302 victims lost a total of $374,622.  Many of these victims were previously compensated after VESCERA and First One paid approximately $1.5 million to the Neighborhood Assistance Corporation of America in March 2013 to resolve a federal lawsuit in the Central District of California.  As part of this criminal case, VESCERA paid restitution of $30,320 to 24 of the victims who were not identified at the time the federal lawsuit was settled.

On May 3, 2016, VESCERA pleaded guilty to one count of misuse of a government seal and one count of false advertising.

Goldreich previously pleaded guilty to one count of false advertising.  On November 5, 2015, he was sentenced to two years of probation, including three months of home confinement.  He also was ordered to pay a $100,000 fine and $75,794 in restitution.

This investigation was conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation.  The case was prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GEORGE SANCHEZ, also known as “Little G,” 22, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by three years of supervised release, for firearm and drug offenses.

According to court documents and statements made in court, on November 28, 2015, a Bridgeport Police Officer performing an inventory search of a vehicle that SANCHEZ had been driving found a loaded .40 caliber semi-automatic pistol, a neoprene face mask and approximately 44 bags of heroin.  Part of the handgun’s serial number had been scratched off.

SANCHEZ has been detained since his arrest on January 6, 2016.  On June 29, 2016, he pleaded to one count of possession of a firearm with an obliterated serial number.

This matter was investigated by the Bridgeport Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Bridgeport Safe Streets Task Force.  The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds.

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 CLARENCE BELL, also known as “Solo,” 20, of West Haven, was arrested today on a criminal complaint charging him with possession with intent to distribute, and distribution of, Xanax, a Schedule IV controlled substance.

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

As alleged in the complaint, at approximately 6:10 a.m. on May 24, 2016, the West Haven Police Department and emergency medical personnel responded to a residence in West Haven on report of a sudden death of a 20-year-old male.  Upon arrival, the initial responding patrol units determined that the death was suspicious in nature and appeared to be drug related.  The investigation, which includes witness interviews and analysis of phone records and surveillance cameras, has revealed that at approximately 10:00 p.m. on May 23, 2016, the victim purchased a quantity of Xanax pills from BELL.  The victim them crushed approximately three of pills and snorted the powder.

The victim’s autopsy report states the official cause of death as acute intoxication due to the combined effects of heroin, alprazolam (Xanax) and cocaine.

BELL appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained.

The charge of possession with intent to distribute, and distribution of, controlled substances, carries a maximum term of imprisonment of five years.

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’s New Haven Task Force, the DEA’s New Haven Tactical Diversion Squad and the West Haven 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 DANIELLE FAUX, 48, of Weston, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of obstruction of a federal audit, and one count of making false statement on a federal income tax return. 

According to court documents and statements made in court, FAUX owns and operates Danielle Faux PT, LLC, a physical therapy clinic located at 27 Lois Street in Norwalk.  In August 2009, a contractor for the Medicare program conducting an audit of FAUX’s physical therapy practice contacted FAUX and requested records of 40 claims for physical therapy that FAUX had submitted to Medicare.  The requested records included appropriate documentation to support the services billed, including the physical therapy progress notes, physical therapy flow sheet/activity sheets, and any additional documentation verifying medical necessity for the physical therapy procedures.  Because no patient progress notes or similar records existed that would support many of the Medicare claims, FAUX instructed a physical therapist working for her to create detailed notes in the patient files that were requested in the audit, and FAUX similarly created such records. 

As part of her plea, FAUX also admitted that from 2008 through 2011, she skimmed checks and cash proceeds from her physical therapy practice and did not declare the skimmed proceeds on her federal income tax returns.  Through this conduct, FAUX avoided paying $77,640 in taxes over the four-year period.

Judge Underhill scheduled sentencing for December 15, 2016, at which time FAUX faces a maximum term of term of imprisonment of five years and a fine of up to $250,000 on the obstruction count, and a maximum term of imprisonment of three years and a fine of up to $100,000 on the tax count.

This matter is being investigated by the Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of the Inspector General, and Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN CRUZ, 38, of New Haven, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of bank robbery and admitted that he committed a total of six bank robberies in Connecticut and New York last year.

According to court documents and statements made in court, CRUZ robbed the Santander Bank at 215 Grand Avenue in New Haven on October 15, 2015; the Wells Fargo Bank at 205 Church Street in New Haven on October 20, November 7 and November 21, 2015; the Bank of America at 157 Church Street in New Haven on November 9, 2015, and the Citizens Bank at 10 North Pearl Street in Albany, N.Y., on November 20, 2015.  CRUZ stole a total of approximately $18,830 during the robbery spree.

CRUZ was arrested on November 21, 2015, in Chicopee, Mass.  He has been detained since his arrest.

Judge Meyer scheduled sentencing for December 20, 2016, at which time CRUZ faces a maximum term of imprisonment of 20 years.

This investigation has been conducted by the Federal Bureau of Investigation and the New Haven Police Department, with the assistance of the U.S. Marshals Service, Chicopee (Mass.) Police Department and Albany (N.Y.) 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 THERESA A. FREEMAN, 65, of Atlantic City, N.J., pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to commit wire fraud stemming from a scheme to defraud unemployment insurance programs in a “fictitious employer scheme.”

According to court documents and statements made in court, FREEMAN filed incorporation paperwork with the State of Connecticut for “Tribal Organic Products,” which she claimed was an internet business that she operated from an address in Trumbull, Connecticut.  The business was, in fact, a fictitious company that did not engage in any business activity.  In December 2012, FREEMAN’s son filed a claim with the Connecticut Department of Labor for unemployment insurance benefits, claiming that he was laid off from Tribal Organic Products.  Between January 2013 and July 2013, FREEMAN’s son received approximately $13,474 in unemployment insurance benefits from the State of Connecticut.

In pleading guilty, FREEMAN also admitted that she previously operated similar fictitious employer schemes that defrauded both the Pennsylvania Department of Labor and Industries and the North Carolina Department of Commerce, Division of Employment Security of $16,253 and $14,136, respectively.

FREEMAN has a prior federal conviction in the District of South Carolina for mail fraud stemming from similar conduct.

Judge Arterton scheduled sentencing for December 13, 2016, at which time FREEMAN faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

This investigation is being conducted by the U.S. Department of Labor – Office of Inspector General, U.S. Department of Homeland Security – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, Pennsylvania Department of Labor and Industries, and North Carolina Department of Commerce, Division of Employment Security.

The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that WILSON VASQUEZ, also known as “Will” and “Pancho,” 43, of New Haven, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to heading a large 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 VASQUEZ 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.

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 have pleaded guilty.

VASQUEZ pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin, an offense that carries a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  A sentencing date is not yet scheduled.

VASQUEZ has been detained since his arrest on July 15, 2015. 

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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that ANTHONY DIAZ, 62, of Monroe, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill to one count of making a false statement to federal agents during an investigation of an employee kickback scheme.

According to court documents and statements made in court, DIAZ is a co-owner of Advantage Cleaning, LLC, which provides custodial services and final cleaning for construction job sites, and he is a manager at Advantage Maintenance, Inc., a janitorial cleaning and maintenance service company.  An investigation revealed that undocumented employees of Advantage Cleaning and Advantage Maintenance were required to kick back a large portion of the pay they received for work they performed on prevailing wage jobs to DIAZ.  Employees who were paid between $37 and $41 per hour would cash their paychecks and would return approximately $25 for each our worked to DIAZ.

On September 26, 2014, DIAZ was interviewed by special agents from the U.S. Department of Labor – Office of Inspector General and Internal Revenue Service – Criminal Investigation Division.  During the interview, DIAZ was questioned about cash kickbacks he had allegedly received and whether Advantage Cleaning or Advantage Maintenance had employed any undocumented workers.  DIAZ denied all of the allegations against him and made several false statements.

In pleading guilty, DIAZ admitted that he had received cash kickbacks from his employees.

Judge Underhill scheduled sentencing for January 10, 2017, at which time DIAZ faces a maximum term of imprisonment of five years and a fine of up to $250,000.

This matter is being investigated by the U.S. Department of Labor – Office of Inspector General and Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

The Perfect Storm

Twenty-three-year-old Louis Ahearn was not a heroin addict.  Until shortly before his death earlier this year, the Derby resident had never used the drug.  A dental procedure and a short search for relief from his pain led him to a local drug dealer who convinced him that heroin was a far cheaper alternative to prescription pills.  Two weeks later, the same dealer gave Louis a free bag as payment for a ride.  That bag turned out to contain pure fentanyl.  Louis died.  He was a gentle soul and the light of many lives. The young dealer who gave him the fentanyl is now serving a six-year term in federal prison, while Louis’s family still searches for answers, like so many other families across Connecticut who have experienced similar tragedies.

In 2012, 357 Connecticut residents died from accidental drug overdoses. Fentanyl played a part in only 14 of those deaths; heroin contributed to 195 of the overdose deaths. In 2016, the dynamics have radically changed for the worse. The Connecticut Office of the Chief Medical Examiner estimates that this year 888 people will die from overdoses, pure heroin will cause only 80 of those deaths, and fentanyl will play a role in a staggering 446 of them.  In Connecticut, fentanyl is the largest single contributor to the dramatic rise in opioid-related overdose deaths.  This potent and lethal chemical is present in much of the heroin sold on our streets.

This dramatic rise in the use of fentanyl as an additive -- and even replacement for heroin -- comes at a time when opioids are prescribed at high rates for everything from school sports injuries to dental procedures.  High school students have easy access to legally prescribed opiates.  A sibling is injured in a football game.  A friend has his wisdom teeth pulled.  A parent is recovering from surgery.  A neighbor has chronic back pain.  There is no question this medicine can be an excellent tool for pain management, but it is also highly addictive.  Four out of five new heroin users started with prescription opioids.  As young people abuse opiates, their source of legally prescribed pills inevitably disappears, and they are left to scramble for alternatives.  The street price for a 40 milligram oxycodone pill is $40, whereas a street-level heroin dealer distributes individual bags for as little as $5. The teenager who began experimenting with his father’s prescribed Vicodin has now developed a heroin habit.  And more and more often, this heroin is mixed with, or replaced by, fentanyl.

In February 2016, the U.S. Attorney’s Office and the Drug Enforcement Administration developed a statewide initiative to combat this epidemic.  Together with local police departments, we are investigating overdose deaths across the state and targeting dealers who sell heroin and fentanyl. We have developed a statewide protocol for handling evidence in overdose cases.  In the past six months, the DEA has investigated more than 70 overdose deaths in Bridgeport, Danbury, Derby, East Haddam, Greenwich, Groton, Manchester, Middlebury, Middlefield, Monroe, New Haven, New London, Newtown, North Haven, Norwalk, Norwich, Old Saybrook, Shelton, Stamford, Stonington, Torrington, Vernon, Waterford, West Hartford, West Haven, Weston, and Woodbridge.  These investigations have resulted in the federal prosecution of over 40 dealers.

But prosecutions alone will never adequately address the underlying problem that increasing numbers of young people quietly are becoming addicted to opioids. Our Office has dedicated significant resources to awareness and prevention, focusing our efforts on high school students and their parents.  Across the state, we have encouraged superintendents and principals to incorporate into their curricula the recently-created FBI/DEA documentary entitled Chasing the Dragon, which chronicles the experiences of individuals impacted by the opioid crisis. 

President Obama has designated this week Prescription Opioid and Heroin Epidemic Awareness Week in recognition of those we have lost and those struggling with addiction, and in the hope of creating greater awareness throughout our nation of this devastating epidemic.  This week and in the weeks to come, our prosecutors will present at schools throughout the state as part of our awareness campaign. This Wednesday, September 21 at 5:30 p.m. at Kennedy High School in Waterbury, we will hold an opioid awareness conference that will include a panel of doctors, and a panel of parents who have lost children to overdoses. Our goal is to educate parents, teachers and students about the consequences of opioid abuse.  All are welcome to attend.

Deirdre M. Daly
U.S. Attorney, District of Connecticut
September 19, 2016

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that LISA LANDMAN, 48, of Redding, waived her right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from an embezzlement scheme.

According to court documents and statements made in court, LANDMAN was the bookkeeper for a Connecticut company.  Between November 2010 and November 2013, LANDMAN defrauded her employer by authorizing and initiating at least 33 wire transfers from the company’s business bank account into her own personal credit card account.  In total, LANDMAN transferred more than $250,000 from the company’s account to her personal credit card account and used the funds for personal purchases including jewelry, clothing, vacations, spa treatments, fitness equipment and entertainment tickets.

When she is sentenced, LANDMAN faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.  A sentencing date has not been scheduled.

This matter is being investigated by the U.S. Secret Service, the Stamford Police Department and the Connecticut Financial Crimes Task Force.  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 ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, has been charged by criminal complaint with making a false statement on a U.S. passport application.

DAVIS was arrested on September 17, 2016.  She appeared today before U.S. Magistrate Judge Joan G. Margolis in Hartford and was ordered detained.

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.

DAVIS has not yet reported to prison to serve her sentence based on her repeated claims of a diagnosis of terminal cancer and heart conditions.

The complaint alleges that, in March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS without disclosing her federal fraud and identity theft convictions in probate court documents as required.  DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.

The complaint further alleges that, 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.

The complaint also alleges that the investigation has revealed that many of DAVIS’s recent claims about her health are false.  In addition, since her sentence was imposed, DAVIS has been employed at a local insurance company and local hospitals under her new identity, and she continues to receive unemployment compensation under her previous identity.  She also took two cruise vacations earlier this year.

If convicted of passport fraud, DAVIS faces a maximum term of imprisonment of 10 years.

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 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 A. CASTELLANO, 59, of Wallingford, pleaded guilty today in Hartford federal court to fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of nearly $1.5 million.

According to court documents and statements made in court, CASTELLANO operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Co., LLC.  As a Certified Public Accountant and owner of Castellano & Co., LLC, CASTELLANO prepared federal and state tax returns for individuals and local businesses.  In connection with his tax preparation business, CASTELLANO established a base of clients to which he offered financial services and investment opportunities in addition to preparing their taxes.

Beginning in approximately July 2007, CASTELLANO falsely represented to victim-investors that he had clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions.   CASTELLANO told victim-investors that he would obtain for them a consistent rate of return of between approximately six percent and eight percent annually on their money by taking their money and placing it with, or loaning it to, one or more of his other clients.  CASTELLANO, through Casbo Investments, prepared and executed official-looking documents and investment contracts termed “Demand Notes,” which contained a promise to return the principal amount, with interest, at any time.

In fact, there were no actual investments or investment opportunities, and the money was not invested with or loaned to other clients of CASTELLANO.  CASTELLANO diverted the funds for his own use and benefit, including making “interest” payments to other victim-investors.  CASTELLANO also made false statements to certain victim-investors to explain various delays in the purported interest payments.   

Through this scheme, CASTELLANO defrauded more than 10 victim-investors of approximately $1.45 million.

CASTELLANO was arrested on April 6, 2016.

CASTELLANO pleaded guilty to one count of mail fraud and one count of money laundering.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 22, 2016, at which time he faces a maximum term of imprisonment of 30 years.  He is released on a $250,000 bond pending sentencing.

This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER G. KRUZYNSKI, 50, of Shelton, was arrested today on a criminal complaint charging him with production and possession of child pornography.

According to the criminal complaint, KRUZYNSKI repeatedly engaged in sexual acts with a male victim beginning in 2009, when the victim was 12 years old, and continuing until August 2016, when the victim was 18 years old.  KRUZYNSKI also used his Apple iPhone to take photographs of the victim engaged in sexually explicit conduct.  The victim was a minor at the time the photographs were taken.  KRUZYNSKI threatened to send the photographs to others if the victim did not see him again.

KRUZYNSKI is an attorney with a law office in Shelton.

KRUZYNSKI appeared this afternoon before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on a $250,000 bond and electronic monitoring.

KRUZYNSKI was arrested on August 30, 2016 on related state charges.

If convicted of the production of child pornography charge, KRUZYNSKI faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years, and a fine of up to $250,000.  The charge of possession of child pornography carries a maximum term of imprisonment of 10 years.

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 Federal Bureau of Investigation, the Shelton Police Department, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The case is being prosecuted by Assistant U.S. Attorney 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, today announced that JAMES ERIK GODIKSEN, 54, of Clinton, has been charged by criminal complaint with murder for hire.

As alleged in the complaint, the ATF received information that GODIKSEN was seeking a person who would be willing to kill his former wife.  Between September 10 and September 14, GODIKSEN and an ATF special agent acting in an undercover capacity spoke multiple times by phone.  During these conversations, GODIKSEN offered to pay the undercover agent $5,000 to murder his “ex-wife,” and provided the agent with a physical description of his former wife, her phone number, her home address, her place of work and the route she typically drove to work.  He also told the undercover agent how he would like his former wife to be murdered.  GODIKSEN offered the undercover agent additional money if he encountered his former wife’s current boyfriend and killed him, too.

GODIKSEN was arrested on September 14 after he met with the undercover agent and provided him with a “down payment” of $80, some of which was to be used to purchase a knife.

GODIKSEN appeared yesterday before U.S. Magistrate Judge Holly B. Fitzsimmons in New Haven and was ordered detained.

The charge of murder for hire carries a maximum term of imprisonment of 10 years. 

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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Clinton Police Department and Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK LEIGH-JAMES, 24, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by five years of supervised release.

According to court documents and statements made in court, in July and August 2015, the Fairfield Police Department orchestrated four controlled purchases of methamphetamine from LEIGH-JAMES.  The DEA’s Bridgeport Task Force then made two additional controlled purchases of methamphetamine from LEIGH-JAMES.  On August 12, 2015, LEIGH-JAMES sold an undercover officer approximately 82.9 grams of methamphetamine in exchange for $3,600.  On September 18, 2015, LEIGH-JAMES sold a second undercover officer approximately 104 grams of methamphetamine in exchange for $8,000.  The purity of the methamphetamine sold by LEIGH-JAMES ranged from 98.7 percent to 100 percent.

LEIGH-JAMES was arrested in Bridgeport on October 5, 2015.  A search of a backpack LEIGH-JAMES had been holding at revealed approximately 7.5 grams of heroin, and a search of a second backpack located in LEIGH-JAMES’ vehicle revealed a clear plastic bag containing approximately 120 grams of methamphetamine and a loaded Kel-Tec .380 semi-automatic handgun.  Agents also found a loaded Charter Arms .44 magnum revolver, which was in a jacket in the vehicle.

The .380 handgun had been reported stolen in Stratford in 2009.

At the time of his arrest, LEIGH-JAMES was on bond for state charges involving the unlawful possession of a firearm and oxycodone pills.

LEIGH-JAMES has been detained since his arrest.  On June 24, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime.

This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, with the assistance of the Fairfield Police Department.  The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.

This case was prosecuted by Assistant U.S. Attorney Amy C. Brown.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the UNIVERSITY OF CONNECTICUT HEALTH CENTER (“UConn Health”) has entered into a civil settlement agreement with the federal government in which it will pay $184,984 to resolve allegations that it overbilled the Medicare Program.

The government alleges that UConn Health improperly submitted claims to Medicare for certain wound closure procedures.  Specifically, the government alleges that UConn Health submitted claims using codes for higher paying wound closure procedures, rather than using codes for the lower paying wound closure procedures that were actually performed.  By coding the wound closure procedures improperly, UConn Health received payments from Medicare that it was not entitled to receive.

UConn Health agreed to pay $184,984 to resolve its liability for conduct that occurred from January 1, 2011, to June 2, 2016.

“Providers who bill Medicare must follow the relevant coding rules when submitting claims and the failure to do so will have serious consequences,” said U.S. Attorney Daly.  “The U.S. Attorney’s office will vigorously pursue health care providers who receive payments from Medicare that they are not entitled to receive.” 

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services, Federal Bureau of Investigation and U.S. Postal Service, Office of Inspector General.  The case was prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Susan Spiegel.

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

United States Attorney Deirdre M. Daly and Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge William Kalb announced that NANCY FRYE, 50, and DOUGLAS MARTIN, 52, both of Bristol, were arrested today on charges related to their alleged involvement in an IRS impersonation scam.

An IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims.  Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS.  During the calls, the impersonator tells the call recipient that the recipient has an outstanding debt with the IRS that must be paid immediately.  The impersonator then threatens persons with either arrest or a lawsuit if they do not immediately settle the bogus IRS debt.  Victims are instructed to wire money to individuals they believe are employees of the IRS in order to avoid the threatened action.

As alleged in court documents, in October 2015, FRYE received phone calls and text messages from individuals who successfully recruited her to pick up money that was wired through MoneyGram and Western Union and to deposit the money into specific bank accounts.  FRYE, in turn, recruited MARTIN and others to assist her in picking up wired funds from locations in central Connecticut.  FRYE then deposited the money that she collected into the bank accounts.

Between October 2015 and May 2016, FRYE, and others working at her direction, received approximately $547,000 in wired funds.  FRYE received approximately $40 per transaction and made approximately $500 per day.

“IRS impersonation scams victimize thousands of innocent people across the country, including many here in Connecticut,” said U.S. Attorney Daly.  “The money generated from these scams is often very significant.  Those who perpetrate these crimes frequently hide overseas and can be difficult to track down.  But together with our partners from the Treasury Department and the Postal Inspection Service, we are committed to bringing those responsible to justice.  This prosecution serves as another opportunity to warn everyone to avoid becoming a victim of this scam.  The IRS will never call anyone and demand immediate payment or threaten arrest.  If you receive one of these calls, just hang up and report the call to the Treasury Inspector General for Tax Administration (TIGTA).”

“Since October 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees,” said TIGTA Special Agent in Charge Kalb.  “TIGTA has received reports of over 1.6 million impersonation related calls with over 8,600 victims reporting losses of almost $47 million.  Victimizing taxpayers by impersonating IRS employees is a serious crime.  TIGTA and our law enforcement partners will do everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.”

FRYE and MARTIN are each charged by federal criminal complaint with wire fraud and conspiracy to commit wire fraud.  They appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and were released on bond.  If convicted of the offenses, they face a maximum term of imprisonment of 20 years.

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

This matter is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) of the U.S. Department of the Treasury and U.S. Postal Inspection Service.  The U.S. Attorney gratefully acknowledges the assistance provided by the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance.

The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

U.S. Attorney Daly stated that the investigation is ongoing and encouraged individuals who receive impersonation calls, including those who have been victimized by this scheme, to report the information at https://www.treasury.gov/tigta/contact_report_scam.shtml.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging BRYAN WHITE, 39, of New London, with one count of enticement of a minor and one count of committing the offense while being a registered sex offender.

The indictment alleges that in June and July 2016, WHITE used a computer, cellular phone, telephone and an internet-based messaging service to attempt to entice a minor to engage in sexual activity.  The indictment further alleges that WHITE committed the offense while he was required by law to register as a sex offender.

WHITE has been in state custody since July 5, 2016, when he was arrested on related state charges.

If convicted of enticement of a minor, WHITE faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment life.  If convicted of committing the offense while being required to register as a sex offender, WHITE faces a mandatory term of 10 years to run consecutive to any term of imprisonment imposed for the enticement of a minor offense.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN ANATE, also known as “Pills” and “Che Pills,” 26, most recently of the Bronx, N.Y., was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.

According to court documents and statements made in court, on March 5, 2015, East Hartford Police encountered an underage girl in a room at a local motel.  The victim stated that she had met ANATE in New York and that, beginning in approximately December 2014, she had engaged in acts of prostitution at ANATE’s direction in various locations, including multiple trips to Connecticut.

The investigation revealed that the victim was prostituted by ANATE at hotels in Hartford, Manchester, New Britain and East Hartford.  The victim had seen several clients per week, giving all of the money to ANATE. 

When ANATE pleaded guilty to the offense on June 9, 2016, he admitted that he knew the victim was under the age of 18.

Judge Bryant ordered ANATE to pay $42,000 in restitution to the victim.

ANATE has been detained since his arrest on March 5, 2015.

This matter was investigated by the Federal Bureau of Investigation, East Hartford Police and West Hartford Police Department.  The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN SANDELLA, 54, of Orange, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to receiving unlawful compensation while serving as an employee of the West Haven Housing Authority.

According to court documents and statements made in court, SANDELLA was employed as the Clerk of the Works for the West Haven Housing Authority (“WHHA”), a federally-funded program through the U.S. Department of Housing and Urban Development. (“HUD”).  HUD’s rules and regulations prohibited the WHHA from entering into any contract in which an officer or employee of the WHHA who influenced decisions with respect to the underlying project had an interest.

From March 2009 through January 2012, SANDELLA used his position as Clerk of the Works to influence the WHHA to enter into a plumbing contract and award plumbing jobs to a plumbing company that was owned and operated by a longtime friend and associate of SANDELLA.  Specifically, SANDELLA assisted the plumbing company’s owner in preparing applications and bids for these jobs and promoted the company to the WHHA as a qualified plumbing service.  In addition, SANDELLA reviewed the work performed by the company at WHHA properties, submitted the company’s invoices to the WHHA for payment, and delivered WHHA payment checks to the company’s owner or deposited those checks himself into the company’s checking account.

Unbeknownst to HUD and the WHHA, the plumbing company’s owner owed private debts to SANDELLA and lacked the means to repay SANDELLA other than with the money paid to the company by the WHHA.

Following the deposit of the WHHA checks into the plumbing company’s checking account, SANDELLA and the company’s owner worked together to direct certain payments out of that same checking account for the benefit of SANDELLA.  Payments included checks written to CJM Construction, which was a plumbing contracting business owned and operated by SANDELLA; checks written to an insurance company for insurance policies for SANDELLA and his family, and checks written to the Regional Water Authority for accounts in the name of SANDELLA and his family.

SANDELLA failed to disclose the existence of his financial interest in the contract between the WHHA and the plumbing company.

Pursuant to the contract in which SANDELLA had an undisclosed interest, the WHHA paid $137,004 to the plumbing company.  In turn, the plumbing company paid $26,687.26 to and for the benefit of SANDELLA.

SANDELLA pleaded guilty to one count of receipt of compensation with the unlawful intent to defeat the purposes of the U.S. Department of Housing and Urban Development, a charge that carries a maximum term of imprisonment of one year.  Judge Underhill scheduled sentencing for December 8, 2016.

SANDELLA has agreed to pay restitution to the WHHA in the amount of $137,004.

This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RONALD PEREZ, 28, BYRON RIVERA, 26, and MARCUS TYSON, 30, all of Hartford, have been arrested and charged by criminal complaints with possession with intent to distribute, and distribution of, one kilogram or more of heroin.

As alleged is court documents and statements made in court, on September 13, 2016, members of the FBI’s Northern Connecticut Violent Crimes Task Force, including the Hartford and East Hartford Police Departments, executed a state search warrant at an apartment at 50 Forest Street in Hartford.  PEREZ, RIVERA and TYSON were encountered in living room of the apartment.  A search of the apartment revealed approximately 50,000 bags of heroin, approximately 300 grams of unpackaged heroin, three fentanyl patches, scales and other items used in the processing and packaging of heroin, and two handguns.

PEREZ, RIVERA and TYSON appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and were ordered detained.

The charge of possession with intent to distribute, and distribution of, one kilogram or more of heroin carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

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

This investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department.  The FBI Task Force includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. 

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KUWAN RUSS, 37, of Hartford, pleaded guilty today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven to possession of a firearm by a convicted felon.

According to court documents and statements made in court, on July 25, 2015, RUSS was stopped by Hartford Police as he operated a vehicle in Hartford.  During a pat-down, an officer located a firearm in RUSS’s front right pants pocket.  The firearm was a Glock, Model 26, 9 millimeter pistol with a magazine that contained 10 rounds.

Prior to September 2015, RUSS had sustained felony convictions for offenses including robbery in the first degree, criminal attempt to commit assault in the first degree, strangulation in the second degree, and weapons 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.

RUSS is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on December 5, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.  

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that JEVAUGHN WATSON, 23, of Bridgeport, was arrested yesterday on a criminal complaint charging him with 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 the complaint, 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 appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.

The charge of possession with intent to distribute, and distribution of, heroin, carries a maximum term of imprisonment of 20 years.

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’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, today announced that JUAN QUINONES, 43, of Port Chester, N.Y, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a convicted felon.

According to court documents and statements made in court, on September 24, 2015, Stamford Police executed a court-authorized search of a local hotel room where QUINONES was staying and found a loaded Glock .45 caliber pistol and distribution quantities of heroin and crack cocaine.  QUINONES was arrested at that time.

QUINONES was previously convicted of felony drug 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. 

Judge Shea scheduled sentencing for December 6, 2016, at which time QUINONES faces a maximum term of imprisonment of 10 years.

The matter has been 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 PETER TORRES, 48, of East Lyme, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to three months of imprisonment, followed by three years of supervised release, for tax evasion.

According to court documents and statements made in court, from 2006 to 2011, TORRES failed to file tax returns and report to the Internal Revenue Service approximately $1.27 million in gross income generated through his work as a commercial fishing boat captain.

On November 30, 2015, TORRES pleaded guilty to one count of attempted tax evasion, admitting that he was issued Forms 1099 that documented the income paid to him for each tax year, but he failed to timely file his tax returns as required and report the income and tax due to the IRS.  In his plea agreement, TORRES agreed that the tax loss for this period is between $250,000 and $550,000.

TORRES also admitted that, in an effort to conceal his income from the IRS, he negotiated checks he received as payment for his fishing services by depositing them in the bank and, on the same day, withdrawing cash or obtaining bank checks in varying amounts under $10,000.

As part of his guilty plea, TORRES acknowledged that he attempted to evade the assessment and payment of his taxes for the 2006 through 2011 tax years.  He will enter into a payment plan with the IRS to repay the back taxes and applicable penalties and interest.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL CARPENTER, 65, of Easton, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to two months of imprisonment, followed by one year of supervised release, for filing false tax returns.  Judge Bolden also ordered CARPENTER to perform 100 hours of community service and pay a $30,000 fine.

According to court documents and statements made in court, CARPENTER operated a chiropractic practice in Bridgeport.  For the 2008 and 2009 tax years, CARPENTER intentionally mischaracterized almost $500,000 in personal expenses as deductible business expenses on his Schedule C relating to his chiropractic practice, including college tuition for his children, luxury items such as oriental rugs and paintings, designer clothing, and foreign and domestic travel.  He also deducted the cost of groceries, expenses at hair salons and other retail purchases.

For the 2008 tax year, CARPENTER took false deductions totaling $308,084, resulting in a tax loss of $106,395, and for the 2009 tax year, he took false deductions totaling $183,283, resulting in a tax loss of $81,199.

CARPENTER has paid all back taxes, plus interest and penalties.

On May 20, 2016, CARPENTER pleaded guilty to one count of filing a false tax return.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging TRAYQUAN FORD, 20, of Meriden, with possession of a firearm by a convicted felon.

As alleged in the complaint that was previously filed in this case, the ATF and Meriden Police Department have been investigating gang-related violence in Meriden between the “Mack Balla Brim Bloods,” which is affiliated with the national “Bloods” gang, and members and associates of the “Crips.”

It is alleged that on July 18, 2016, FORD possessed a Taurus, model PT738 TCP, .380 caliber semi-automatic pistol that contained a magazine loaded with six rounds of ammunition and one round in the chamber.

Prior to that date, it is alleged that FORD had sustained a felony conviction for carrying a pistol without a permit.  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.

If convicted of the offense, FORD faces a maximum term of imprisonment of 10 years.  He has been detained since his arrest on July 18.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Meriden Police Department.  The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHDI MOAREFIAN, also known as “Michael Miller,” 37, of Irvine, California, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for participating in an extensive mortgage loan modification scheme.  MOAREFIAN also was ordered to pay restitution in the amount of $2,390,496.59.

According to court documents and statements made in court, Aria Maleki, MOAREFIAN and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees.  The defendants did business, at various times, as “First Choice Financial Group, Inc.,”  “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”

Maleki presided over the entire structure of this scheme, and MOAREFIAN was a senior member of the sales team.  Acting as representatives of the above-named entities, MOAREFIAN and other co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans.  The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services.  To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.

In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request.  Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.

Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection.  The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.

As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.

The investigation revealed that the top tier of salesmen, including MOAREFIAN, were paid based on commission and typically earned 45 percent to 50 percent of the final fee, after $750 to $1,000 was taken by Maleki for administrative costs.

On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, MOAREFIAN and five other California residents with conspiracy and fraud offenses related to this scheme.  The defendants were arrested on January 26. 

On February 17, 2016, MOAREFIAN pleaded guilty to one count of conspiracy to commit mail and wire fraud. 

Maleki pleaded guilty to the same charge and, on July 18, 2016, was sentenced to 112 months of imprisonment.  He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia. 

This matter has been investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DENNIS W. HAMILTON, 46, of Norwalk, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to eight months of imprisonment, followed by one year of supervised release, for insider trading.  Judge Thompson also

According to court documents and statements made in court, HAMILTON was employed as Vice President of Tax at Harman International Industries, Incorporated (“Harman”) in Stamford.  Harman is a publicly-held company whose shares trade on the New York Stock Exchange under the ticker symbol “HAR.”  Beginning in 2009, Harman allowed directors, members of its executive committee and certain other insiders to buy or sell Harman securities in the public market only during a declared trading window period.  In August 2013, HAMILTON was included on Harman’s insider trading list, and he was subsequently notified when the window in which he could engage in open market purchases of Harman securities was open, and that all trades must be cleared in advance with Harman’s general counsel.  On September 27, 2013, HAMILTON and other Harman employees were advised via email that the “window period” within which they may engage in open market purchases or sales of Harman securities had closed.

In October 2013, HAMILTON received material, non-public information about Harman’s financial results for the first quarter for the fiscal year ending 2014, including drafts of Harman’s Form 10-Q filing and an earnings press release.  He and other Harman executives also participated in a conference call with Harman’s Audit Committee, during which a draft resolution declaring a quarterly cash dividend on Harman’s common stock was discussed.

On October 30, 2013, HAMILTON, an insider in possession of material, non-public information, purchased 17,000 shares of HAR for between $72.07 and $72.67 per share, through a Charles Schwab account in the name of HAMILTON and his wife.  On October 30, 2013, the closing price of HAR was $72.02.  On October 31, 2013, Harman announced positive first quarter earnings for fiscal year 2014.  On that date, the closing price of HAR was $81.02.

Between October 31, 2013 and November 5, 2013, through his Charles Schwab account, HAMILTON wrote at least 200 covered calls on HAR at a strike price of $70.00 with an expiration date of November 16, 2013 for a premium of $203,366.  Through the use of some of these covered calls, HAMILTON realized a gain of $131,958 on the 17,000 shares of HAR he had purchased on October 30, 2013.

HAMILTON was arrested on a criminal complaint on February 5, 2016.   On March 28, 2016, he waived his right to indictment and pleaded guilty to one count of securities fraud. 

In a parallel action, the Securities and Exchange Commission has filed related civil charges against HAMILTON.  (Securities and Exchange Commission v. Dennis Wayne Hamilton, 3:16-cv-00192)

This investigation was conducted by the Federal Bureau of Investigation with valuable assistance from Harman International Industries.  The case was prosecuted by Assistant U.S. Attorney Heather Cherry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two California residents involved in an extensive mortgage loan modification scheme were sentenced today in Bridgeport federal court.  U.S. District Judge Stefan R. Underhill sentenced SERJ GEUTSSOYAN, also known as “Anthony Kirk,” 34, of Santa Ana, to 52 months of imprisonment, and DANIEL SHIAU, also known as “Scott Decker,” 30, of Irvine, to 58 months of imprisonment.  GEUTSSOYSAN and SHIAU also were ordered to serve three years of supervised release and pay restitution in the amount of $2,390,496.59.

According to court documents and statements made in court, Aria Maleki, GEUTSSOYAN, SHIAU and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees.  The defendants did business, at various times, as “First Choice Financial Group, Inc.,”  “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”

Maleki presided over the entire structure of this scheme, and GEUTSSOYAN and SHIAU were senior members of the sales team.  Acting as representatives of the above-named entities, GEUTSSOYAN, SHIAU and other co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans.  The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services.  To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.

In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request.  Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.

Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection.  The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.

As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.

The investigation revealed that the top tier of salesmen, including GEUTSSOYAN and SHIAU, were paid based on commission and typically earned 45 percent to 50 percent of the final fee, after $750 to $1,000 was taken by Maleki for administrative costs.

On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, GEUTSSOYAN, SHIAU and four other California residents with conspiracy and fraud offenses related to this scheme.  The defendants were arrested on January 26. 

Maleki, GEUTSSOYAN and SHIAU each pleaded guilty to one count of conspiracy to commit mail and wire fraud. 

On July 18, 2016, Maleki was sentenced to 112 months of imprisonment.  He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia. 

The other four defendants also have pleaded guilty and await sentencing.

This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.

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 MARK W. IRVIN, 64, of Meriden, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of production of 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 two males who were under the age of 18.  IRVIN 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.

IRVIN has been detained since his arrest on September 18, 2015.

Judge Underhill scheduled sentencing for November 23, 2016, at which time IRVIN faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.

IRVIN also is charged with related state offenses.

This matter is being investigated by the Meriden Police Department, Homeland Security Investigations and Connecticut State Police.  The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, Connecticut Attorney General George Jepsen, and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, today announced that JESUS VILLEGAS, DDS, and his two pediatric dental clinics located in Milford and West Haven have entered into a civil settlement agreement with the federal and state governments in which they will pay $1,367,466 to resolve allegations that they violated the federal and state False Claims Acts.

The allegations arise out of the taking of pediatric dental x-rays at FAIRFIELD PEDIATRIC DENTISTRY, LLC (“FAIRFIELD”) in Milford and HAVEN PEDIATRIC DENTISTRY, LLC (“HAVEN”) in West Haven.  Under Connecticut law, a licensed dentist may delegate to dental assistants the taking of dental x-rays if the dental assistant can demonstrate successful completion of the dental radiography portion of an examination prescribed by the Dental Assisting National Board (“DANB”).  The certification provided by the DANB examination is important to ensure dental assistants are appropriately trained in the use of x-ray procedures and to ensure the x-rays are performed safely.

The federal and state governments allege that the majority of x-rays taken at DR. VILLEGAS’ dental clinics were taken by dental assistants who were not DANB certified.  X-rays taken by uncertified dental assistants are not payable by the Medicaid program.

To resolve the allegations under the federal and state False Claims Acts, VILLEGAS, FAIRFIELD and HAVEN have agreed to pay $1,367,466, which covers conduct occurring from June 1, 2010 through and including March 17, 2014.

As part of the settlement, VILLEGAS, FAIRFIELD and HAVEN have entered into a three-year billing Integrity Agreement with the U.S. Department of Health and Human Services that is designed to ensure future compliance with the requirements of federal healthcare programs.

“Health care providers must utilize properly certified individuals to treat patients, and the failure to ensure such proper care for patients will have serious consequences,” said U.S. Attorney Daly.  “The U.S. Attorney’s office is committed to vigorously pursuing health care providers who submit false or fraudulent claims to federal health care programs.”

“Dentists must ensure that only certified staff provide services to their patients,” said HHS-OIG Special Agent in Charge Coyne.  “Cutting corners could jeopardize the safety of patients and the integrity of the Medicaid program.  Working with our law enforcement partners, our agency is dedicated to protecting patients and the government health care programs designed to serve them.”

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders, and by Assistants Attorney General Karen S. Haabestad and Natasha Freismuth of the Connecticut Office of the Attorney General.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON GATTO, 34, of Gardiner, New York, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 40 months of imprisonment, followed by three years of supervised release, for burglarizing a Connecticut residence and stealing approximately $2.5 million in jewelry.

According to court documents and statements made in court, GATTO was a member of a group of friends who referred to themselves as the “Jedi Knights” and committed hundreds of residential burglaries in Connecticut and other states along the eastern seaboard, stealing money, jewelry and firearms.

In February 2012, GATTO and Michael Simpson of Montgomery, New York, burglarized a residence in Salisbury, Connecticut, and stole approximately 250 pieces of jewelry valued at more than $2.5 million.  Believing that many of the stolen pieces were not valuable, GATTO discarded them from his car window as he and Simpson drove from the scene.  Later, Simpson showed some of the remaining stolen jewelry to his girlfriend, Martha Dahl, who identified the items as being valuable.  GATTO, Simpson and Dahl then traveled with the jewelry to North Carolina.  On the way, they contacted Miguel Mead and bought him an airline ticket, which he used to immediately fly to North Carolina.  In North Carolina, the jewelry was distributed among the group to sell.  Members of the group then sold pieces of the stolen jewelry to businesses in North Carolina, California, and elsewhere.

After the burglary, the Connecticut State Police recovered some of the stolen jewelry along the side of Route 41 in Salisbury.

Judge Meyer ordered GATTO to pay $1.5 million in restitution.

GATTO was arrested on January 6, 2016.  On March 7, he pleaded guilty to one count of conspiracy to transport stolen property.

Simpson, Dahl and Mead also pleaded guilty.  On February 16, 2016, Mead, of Schenectady, New York, was sentenced to 41 months of imprisonment.  Simpson and Dahl await sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police.  The case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN WELCH, 22, of Salem, Mass., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which WELCH must spend in home confinement, for distributing a synthetic hallucinogenic drug at Wesleyan University.  Judge Bolden also ordered WELCH to perform 200 hours of community service.

According to court documents and statements made in court, on October 31, 2015, the Wesleyan University Department of Public Safety responded to an emergency call from a campus dorm room and found a male student in severe medical distress.  The victim was convulsing and struggling to breathe, and his body temperature was significantly elevated.  The victim was transported by ambulance to the hospital where he spent several days recovering. 

The investigation revealed that the victim had ingested “2C-B,” and that WELCH was the source of the 2C-B that the victim ingested.

The investigation further revealed that WELCH, a member of Wesleyan’s football team, had distributed 2C-B to between 15 and 20 other members of the team during the 2015 season.  Initially, he distributed the drug in liquid form, mixing it in a water bottle with a non-alcoholic drink.  Later, he distributed it in powder form, in clear capsules.  Some teammates referred to the 2C-B distributed by WELCH as “Welchie’s drug” or “Welchie’s special.”  Certain players paid WELCH approximately $10 for each single-dose capsule.

The investigation further revealed that WELCH purchased the synthetic drug on the Dark Web using Bitcoin.

WELCH was arrested on a federal criminal complaint on January 21, 2016.  On March 8, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 2C-E and 2C-B, Schedule I controlled substances (hallucinogens).

This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton and Milford Police Departments.

This case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro of the Middlesex State’s Attorney’s Office, who was cross-designated as a Special Assistant U.S. Attorney in this matter.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL PERROTTI, 49, of Middlebury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to three months of imprisonment, followed by three years of supervised release, for embezzling funds while serving as the Fire Chief of the Town of Middlebury.  Judge Meyer also ordered PERROTTI to perform 200 hours of community service during his term of supervised release. 

On July 23, 2015, a jury found PERROTTI guilty of two counts of theft concerning programs receiving federal funds.

According to the evidence at trial, PERROTTI served as the Fire Chief of the Middlebury Volunteer Fire Department, Inc. (“MVFD”) from 1997 until 2014.  PERROTTI also is a licensed electrical contractor and, since approximately 2010, has operated Paul Perrotti Electric, LLC (“PPE”).  In 2012 and 2013, PERROTTI used Town funds to pay for unauthorized personal expenses and for expenses associated with PPE.  These payments included checks made directly payable to employees of PPE, checks made to various vendors of PPE for PPE-related supplies, and checks made to pay third parties, who ultimately passed on the payments to PERROTTI.  PERROTTI also submitted invoices to the Town of Middlebury for expenses that he falsely claimed were incurred by MVFD but, in fact, were expenses related to the business of PPE, including bills for various vendors of PPE.

In a post-trial ruling, Judge Meyer found that PERROTTI embezzled $25,746 from the Town and the MVFD.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Sarah Karwan and Heather Cherry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DEBRA BIAGI, 50, of Fogelsville, Pa., formerly of Greenwich, waived her right to indictment and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of wire fraud stemming from her theft of more than $700,000 from her employer and related companies and individuals.

According to court documents and statements made in court, BIAGI was employed by HB Nitkin Group of Greenwich, Connecticut, a privately owned business engaged in real estate management and development.  BIAGI served as an assistant to the chairman of the company with responsibilities that included managing the accounts payable for the company.

From approximately February 2014 to December 2015, BIAGI defrauded the company, as well as key company individuals and members of their families who retained financial and banking information at the company.  As part of the scheme, BIAGI created fraudulent invoices made out to fictitious companies detailing charges for items such as masonry, carpentry, electrical and plumbing work.  She then used victims’ checkbooks to make checks out to the fictitious companies, purportedly to pay the fraudulent invoices.  BIAGI then deposited the checks into her personal bank account, at times endorsing the check with an illegible signature to hide her misconduct, and subsequently withdrew the monies for her personal use.

To keep track of which invoices were fictitious and which checks were made to fictitious companies, BIAGI often included her initials “DB” in the fabricated company name listed on the invoice and check.  BIAGI then noted the fictitious company as the payee in the relevant accounting records at the company and filed the fabricated invoices as business record.  BIAGI also, as needed, misappropriated the signature stamp of the company’s chairman and used it to “sign” the misappropriated checks and to falsely suggest that the paid expenditure was both legitimate and authorized.

In addition, at different times during the scheme, BIAGI simply stole checks from employees of the company and either made the checks to cash, or endorsed to cash checks that already listed a payee.

In total, BIAGI stole $711,074.39 during the course of this scheme.

Judge Meyer scheduled sentencing for November 21, 2016, at which time BIAGI faces a maximum term of imprisonment of 20 years.

This matter is being investigated by the Federal Bureau of Investigation and Greenwich Police Department.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that TALLAT MAHMOOD, 63, of Waterbury, RAUL CARLOS MONARCA, 40, of Waterbury, and TAHIR SHAHZAD, 32 of Harrison, N.Y., have been arrested on criminal complaints charging them with federal food stamp fraud and illegally trafficking in food stamp benefits at a retail food store in Waterbury.  MAHMOOD and MONARCA were arrested by federal law enforcement agents on August 18 and SHAHZAD surrendered to authorities yesterday afternoon.

The federal food stamp program, also known as the Supplemental Nutrition and Assistance Program (SNAP), is administered by the U.S. Department of Agriculture’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 the criminal complaints, MAHMOOD, MONARCA and SHAHZAD worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury.  From November 2014 until June 2016, MAHMOOD, MONARCA and SHAHZAD illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including cigarettes, glass pipes, bongs and hookahs.  The store operators often charged a premium for these illegal transactions.

According to the complaints, 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.

Following their arrests, MAHMOOD, MONARCA and SHAHZAD appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven.  MAHMOOD and SHAHZAD were ordered to surrender their passports and were released on bond.  MONARCA was ordered detained.

If convicted, the defendants each face a maximum term of imprisonment of five years, a fine of up to $250,000 and full restitution to the government.

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

This 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 E. King and Neeraj N. Patel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PIERRE JEUDY, 56, of Norwich, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of wire fraud stemming from his involvement in an insurance fraud scheme.

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

In pleading guilty, JEUDY admitted his personal involvement in a staged automobile crash in Norwich on October 22, 2013.

JEUDY was arrested on May 20 and is released on bond.  He is a citizen of Haiti and a lawful permanent resident of the U.S.

Judge Meyer scheduled sentencing for November 29, 2016, at which time JUEDY faces a maximum term of imprisonment of 20 years.     

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HARRY ANDERSON, also known as “Ace,” 23, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 120 months of imprisonment, followed by five years of supervised release, for using a firearm during a violent robbery attempt.

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

According to court documents and statements made in court, on October 21, 2011, ANDERSON ordered a quantity of crack cocaine from Marquise Moore, whom he knew to be a drug dealer.  ANDERSON claims his objective in ordering the crack cocaine was not to purchase it, but to rob Moore of the drugs and any cash he had on him at the time.  When ANDERSON met Moore, he pulled out a .22 caliber handgun and shot him in the face.  ANDERSON fled before completing the robbery.

ANDERSON was incarcerated in state custody on November 29, 2011, for an unrelated armed robbery offense.  He was transferred into federal custody on May 29, 2015.  On March 9, 2016, he pleaded guilty one count of discharging a firearm in furtherance of a crime of violence.

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

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

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert 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 STEVEN SANTUCCI, 40, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 16 months of imprisonment, followed by two years of supervised release, for manufacturing and distributing steroids.  Judge Chatigny also ordered SANTUCCI to serve six months of home confinement and perform 120 hours of community service while on supervised release, and pay a $5,000 fine.

According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that SANTUCCI, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids.  The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone, as well as cocaine.

SANTUCCI used more than $120,000 in proceeds from the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies.  Also, between April 2011 and November 2014, SANTUCCI charged more than $300,000 on two personal credit credits, including more than $100,000 to pay for various luxury vacations. 

SANTUCCI was arrested on April 29, 2015.  On December 9, 2015, he pleaded guilty to one count of conspiracy to distribute anabolic steroids and one count of conspiracy to launder monetary instruments.

SANTUCCI, who is released on a $100,000 bond, was ordered to report to prison on October 10.

This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 

This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a grand jury in New Haven returned an indictment yesterday charging JAMAR JONES, also known as “Mitch,” 35, and ALVIN LOPES, 40, both of Waterbury, with heroin distribution offenses.

The eight-count indictment alleges that between March 2016 and August 2016, JONES and LOPES conspired to distribute and distributed various quantities of heroin.  The indictment also charges JONES with one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).

If convicted of the charges contained in the indictment, JONES and LOPES face a maximum term of imprisonment of 20 years on each count.

JONES and LOPES were arrested on federal criminal complaints on August 11 and August 10, respectively, and are detained.

The case is assigned to U.S. District Judge Michael P. Shea in Hartford.

This matter is being investigated by the DEA New Haven Task Force and the Ansonia Police Department.  The DEA Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.  The 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, today announced that JAMES HAYES, also known as “T.Y.,” 32, of Waterbury, was arrested on heroin distribution offenses earlier this week.  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.

HAYES is charged by criminal complaint with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute heroin.  The charges carry a maximum term of imprisonment of 20 years on each count.

According the complaint, on June 16, 2016, Monroe Police and emergency medical personnel responded to a residence in Monroe on report of a possible heroin overdose and found an unresponsive 32-year-old female on the floor of her bedroom.  The victim was pronounced deceased shortly thereafter.  Investigators seized various items that were located in the bedroom, including several empty wax folds and one wax fold that contained suspected heroin.  It is alleged that HAYES distributed heroin that was consumed by the victim shortly before her death.

HAYES was arrested on August 22, 2016.  He appeared yesterday before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.

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’s New Haven Tactical Diversion Squad, Monroe Police Department and Waterbury Police Department.  The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.  The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER GRAHAM, also known as “Ugg,” 29, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by five years of supervised release, for federal assault and narcotics offenses.

On September 30, 2015, a federal grand jury in New Haven returned a 34-count indictment against GRAHAM and five co-defendants charging various racketeering, violent crimes in aid of racketeering, firearms, money laundering and narcotics distribution offenses.  The indictment described a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.

GRAHAM was a member of the RSGB in 2014.  As part of his gang membership, on December 23, 2014, he committed a violent assault of an individual over a .40 caliber pistol that the victim allegedly stole from him.  GRAHAM committed the assault along with another RSGB member whom he had called to the scene after realizing the victim had stolen the gun.

In addition, on multiple occasions between October 2014 and December 2014, GRAHAM either distributed or possessed with the intent to distribute crack cocaine.

GRAHAM has been detained since his arrest on October 6, 2015.  On January 22, 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. 

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

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

This matter is being prosecuted 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 DAWN MININBERG, 48, of Easton, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release with the first 12 months on home confinement, for stealing approximately $380,000 from her employer.

According to court documents and statements made in court, MININBERG worked for a company located in Greenwich where she provided financial services.  MININBERG was issued an American Express corporate credit card for business purposes and, as part of her duties, she prepared expense reports justifying the charges to all of the corporate credit cards, including her own.  Over the course of approximately two years, MININBERG charged approximately $380,000 in personal expenses to her corporate credit card for clothing and other items purchased at high-end stores, theater tickets, children’s parties and lessons, charitable donations, vacations and the purchase of an $11,000 jungle gym.  MININBERG hid these expenditures by categorizing them as office supplies, meals, meetings or lodging.

Judge Underhill ordered MININBERG to pay restitution in the amount of $386,907.77.

On January 15, 2016, MININBERG pleaded guilty to one count of wire fraud.

This matter was investigated by the Connecticut Financial Crimes Task Force, U.S. Secret Service and Greenwich Police Department.  The case was prosecuted by Assistant U.S. Attorney Ray Miller.