District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and New Haven Police Chief Dean Esserman today announced that an investigation into numerous drug overdoses, including three overdose deaths, last week in New Haven has resulted in federal narcotics distribution charges against three New Haven residents.  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.

FRANK PINA, 57, and JEROME CLAY, SR., 55, were arrested yesterday on federal criminal complaints charging each with possession with intent to distribute, and distribution of, controlled substances, and conspiracy to distribute controlled substances.  STEVEN WHALEY, 48, was arrested yesterday on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, controlled substances.

The three defendants appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and are detained.

As alleged in court documents and statements made in court, the Drug Enforcement Administration and New Haven Police Department are investigating the drug overdoses of 17 individuals that occurred in New Haven on June 23, 2016.  Three of the victims died, and four victims remain hospitalized.

The investigation has revealed that many or all of the victims believed the substance they were consuming was cocaine.  However, based in part on DEA laboratory testing, it appears that the substance was pure fentanyl, a powerful opioid that can be at least 50 times more powerful than heroin.  Naloxone, an emergency drug used to treat opioid overdoses, was effective in treating at least some of the victims, which indicates that the ingested substance was an opioid and not cocaine.  Analysis of the substance involved in the overdoses is not yet completed.

It is alleged that PINA, CLAY and WHALEY supplied drugs to at least 12 of the individuals who overdosed on June 23, 2016, including at least two victims who died.

“Without the combined effort of federal and local law enforcement, emergency medical personnel and city officials, a terrible public health crisis could have been much worse,” said U.S. Attorney Daly.  “We promised that we would act swiftly and that is exactly what our DEA agents, New Haven Police officers and federal prosecutors have done.  I thank our partners at the DEA, particularly members of its Tactical Diversion Squad, and the New Haven Police Department for their excellent work in quickly and expertly tracking down the source of these deadly drugs.  Now it is our job to bring those responsible for these overdoses to justice.”

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

“New Haven Police detectives and the Criminal Intelligence Unit worked flat out from Thursday afternoon through this weekend to save New Haven lives and track down the individuals responsible for dealing these drugs,” said Chief Esserman.  “I could not be more proud of them.  I am just as grateful to our federal partners for working side by side with us.  We came together in a time of emergency and stopped the dying.”

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

This ongoing investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the New Haven Police Department.  The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Middlebury Police Departments, and the Connecticut State Police.  The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEWELL SHARPE, also known as “C.C.,” 33, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 48 months of imprisonment, followed by five years of supervised release for distributing heroin and crack cocaine.

According to court documents and statements made in court, in November 2015, the Connecticut State Police Statewide Narcotics Task Force, working with the FBI’s Safe Streets Task Force, conducted a series of controlled purchases of heroin and crack cocaine from SHARPE in the P.T. Barnum housing complex.

SHARPE has been detained in federal custody since January 26, 2016.  On March 11, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.

SHARPE’s criminal history includes multiple felony convictions, and he committed this most recent offense while he was on state probation.

This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, Connecticut State Police Statewide Narcotics Task Force and Bridgeport Police Department.  The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and  Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven returned a 26-count indictment yesterday charging MITCHELL ANDERSON, 51, of Avon, and JAMES C. DUCKETT JR., 44, of Somers, with conspiracy, fraud and related offenses stemming from the City of Hartford’s efforts to revitalize Dillon Stadium and a plan to bring a professional soccer team to the city.

ANDERSON was arrested this morning at this residence.  He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $100,000 bond.  DUCKETT surrendered to the FBI in Las Vegas, and is expected to appear in Las Vegas federal court tomorrow.

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

The indictment alleges that, beginning in approximately March 2015, ANDERSON and DUCKETT submitted invoices to the city for reimbursement to PSMG subcontractors working on the project.   However, rather than pay the total amounts owed to PSMG’s subcontractors, ANDERSON and DUCKETT directed hundreds of thousands of dollars that they received from the city to themselves, PSMG, Black Diamond and to other entities not related to the Dillon Stadium project.  In addition, the indictment alleges that ANDERSON and DUCKETT caused inflated invoices to be submitted to the city. 

The indictment charges both ANDERSON and DUCKETT with conspiracy to commit mail and wire fraud.  The indictment also charges ANDERSON with four counts of mail fraud, and both defendants with multiple counts of wire fraud and conducting illegal monetary transactions.

If convicted of the conspiracy, mail and wire fraud counts, the defendants face a maximum term of imprisonment of 20 years on each count.  If convicted of conducting illegal monetary transactions, the defendants face a maximum term of imprisonment of 10 years on each count.

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AMONDA MENDEZ, also known as “M-Dot” and “Dot,” 25, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by four years of supervised release.

This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Stamford Police Department, with the assistance of the Fairfield Police Department.

According to court documents and statements made in court, in January 2015, Stamford Police received information that MENDEZ was distributing a large quantity of heroin, cocaine, crack cocaine and oxycodone in Stamford.  Between February and April 2015, the DEA Task Force conducted four controlled purchases of narcotics from MENDEZ.  A subsequent court-authorized wiretap confirmed that MENDEZ was distributing heroin, cocaine, crack cocaine, marijuana and prescription pills, including Percocet and Xanax.

MENDEZ was arrested on May 17, 2015, after the wiretap revealed that she was injured the previous day in a shoot-out with another individual and she might be preparing to retaliate further.  A search of MENDEZ’s Bridgeport apartment on the day of her arrest revealed the handgun she used in the shooting incident, a sawed-off shotgun, narcotics, and approximately $10,000 in cash.  In addition, a search of her vehicle revealed a bulletproof vest.

MENDEZ has been detained since her arrest.  On November 19, 2015, she pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.

The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.

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

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 an investigation into a recent drug overdose death of a man in Monroe and a non-fatal overdose of a man in Bridgeport has resulted in federal heroin distribution charges against two brothers.  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.

ERICK DELGADO, 39, and his brother, ANORIS DELGADO, also known as “Alex,” 28, both of Bridgeport, were arrested yesterday on federal criminal complaints charging each with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute heroin.  They appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and are detained.  A detention hearing is scheduled for July 6.

As alleged in court documents, in the morning of April 25, 2016, Bridgeport Police and medical personnel responded to a location on Washington Avenue on a report of a possible drug overdose.  The overdose victim was revived with two doses of Narcan and was transported to the hospital.  A friend of the victim, who was with the victim at the time and contacted medical professionals after the overdose, told investigators that he and the victim purchased heroin from and individual he knew as “Eric” in the area of Brooks Street and Ogden Street in Bridgeport.  The victim subsequently identified ERICK DELGADO as the source of the heroin he used.

It is also alleged that in the evening of April 25, 2016, Monroe Police and emergency medical personnel responded to a report of an unresponsive 48-year-old male at residence in Monroe.  The victim was pronounced dead at the scene.  A subsequent interview with an acquaintance of the victim revealed that, on April 25, the victim and his acquaintance traveled to the area of Brooks Street and Ogden Street where the victim purchased heroin from ERICK DELGADO.

It is further alleged that on May 3, 2016, an individual working with law enforcement contacted ERICK DELGADO to arrange the purchase of heroin.  When the individual and an undercover officer arrived in the area of Brooks Street and Ogden Street, they were met by ANORIS DELGADO who subsequently provided them with 20 bags of heroin.  The undercover officer purchased another 20 bags of heroin from ANORIS DELGADO on May 20.

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

This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Monroe and Bridgeport Police Departments.  The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Middlebury Police Departments, and the Connecticut State Police.  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 ELENA ILIZAROV, 43, of Stamford, was arrested yesterday on a federal criminal complaint alleging that she used stolen identity information to operate a health care fraud scheme.  ILIZAROV owned and operated Advanced Dentistry, a dental practice located in Stamford.

ILIZAROV appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was released on a $500,000 bond, with the requirement that ILIZAROV wear a GPS monitoring device.  

The complaint alleges that, beginning in approximately 2005, ILIZAROV fraudulently obtained the personal identifying information of a retired dentist and used that information to bill insurance companies through Advanced Dentistry for dental care allegedly performed by the retired dentist.

The alleged scheme resulted in losses of more than $1.1 million to the various health insurance companies.

The charge of wire fraud 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 Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Health and Human Services – Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David J. Sheldon.

“This alleged scheme victimized a retired dentist who had his identity stolen, as well as multiple insurance companies that paid more than a million dollars in fraudulent claims,” said U.S. Attorney Daly.  “Health care insurance fraud schemes ultimately increase health care costs for all of us, and the U.S. Attorney’s Office and our federal and state investigative partners are committed to uncovering all of them to ensure that justice is done.”

U.S. Attorney Daly noted that this announcement is made as part of a national health care fraud takedown.

Earlier today, Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced an unprecedented nationwide sweep led by the Medicare Fraud Strike Force in 36 federal districts, resulting in criminal and civil charges against 300 individuals, including 61 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $900 million in false billings.  Twenty-two state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, the HHS Centers for Medicare & Medicaid Services (CMS) is suspending payment to a number of providers using its suspension authority provided in the Affordable Care Act.  This coordinated takedown is the largest in history, both in terms of the number of defendants charged and loss amount.   

“As this takedown should make clear, health care fraud is not an abstract violation or benign offense – It is a serious crime,” said Attorney General Loretta Lynch.  “The wrongdoers that we pursue in these operations seek to use public funds for private enrichment.  They target real people – many of them in need of significant medical care.  They promise effective cures and therapies, but they provide none.  Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends.  The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.”

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations and since its inception in March 2007 has charged over 2,900 defendants who collectively have falsely billed the Medicare program for over $8.9 billion.

Including today’s enforcement actions, nearly 1,200 individuals have been charged in national takedown operations, which have involved more than $3.4 billion in fraudulent billings.  Today’s announcement marks the second time that districts outside of Strike Force locations – including the District of Connecticut – participated in a national takedown, and they accounted for 82 defendants charged in this takedown.

U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ORVAL FURLONG, 73, of Southport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to five months of imprisonment, followed by one year of supervised release, for failing to pay taxes on money he stole from a benefactor.  FURLONG also was ordered to perform 200 hours of community service.

According to court documents and statements made in court, FURLONG was a life-long friend of a wealthy benefactor and, over the years, the benefactor paid some of FURLONG’s debts.  During the last years of the benefactor’s life, FURLONG hired home health aides to care for the benefactor.  During this time, the benefactor provided FURLONG with a stipend of approximately $8,000 to $10,000 per month.  The benefactor also employed the services of an attorney who acted as the benefactor’s power of attorney and oversaw the benefactor’s finances.  FURLONG provided the attorney with a detailed itemization of the hours worked by the home health aides, the hourly rates for their services, and the total funds needed to pay them for the services provided.  The attorney then issued FURLONG checks from one of the benefactor’s bank accounts to pay the health aides.

From at least 2009 to 2011, FURLONG routinely inflated the applicable hourly rate paid to the home health aides.  FURLONG then paid the home health aides in cash or by check in an amount significantly lower than FURLONG had represented to the attorney.  FURLONG kept the difference and used the funds for his personal expenditures. 

On February 22, 2016, FURLONG pleaded guilty to one count of tax evasion and admitted that he failed to report more than $500,000 in stolen income on his 2009 through 2011 federal tax returns.

FURLONG has paid $105,693 in back taxes.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDGARDO TORRES, also known as “Eggy,” 37, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 70 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine and heroin.

This matter stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities.  Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence.  A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.  Members of Los Solidos attended call-ins that were held in April 2014 and August 2014, but after a spate of shootings involving Los Solidos members and associates, law enforcement directed its coordinated attention to the group.  

According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End.  The investigation, which culminated in June 2015 with the indictment of more than 30 defendants, included the use of court-authorized wiretaps, controlled purchases of heroin, crack cocaine and firearms, and the execution of more than 15 searches.  These law enforcement efforts resulted in the seizure of 24 firearms, approximately $74,000, two kilograms of crack cocaine, two kilograms of powder cocaine, one kilogram of heroin, 7,000 bags of packaged heroin, and four vehicles.

Between September 2014 and February 2015, the FBI’s Task Force and Hartford Police Department conducted 14 controlled purchases of heroin and/or crack cocaine from TORRES.

TORRES has been detained since his arrest on June 15, 2015.  On March 17, 2016, he pleaded guilty to one count of possession with intent to distribute and distribution of cocaine base (“crack”) and heroin.

This case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ORETAGUS EADDY, 39, of Branford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for selling heroin and crack cocaine.

This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force.

According to court documents and statements made in court, between January 2013 and July 2013, the Task Force made two controlled purchases of heroin and four controlled purchases of crack cocaine from EADDY.

EADDY was arrested on March 3, 2014.  On March 7, 2016, he pleaded guilty to one count of possession with intent to distribute and distribution of heroin.

EADDY’s criminal history dates to 1993 and includes a prior federal conviction for distributing heroin, cocaine and crack.

The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.

This case was prosecuted Assistant U.S. Attorney Michael E. Runowicz.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICTOR CUEVAS, 52, of Bristol, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to conspiring with others to commit bank fraud in connection with his home mortgage loan applications. 

According to court documents and statements made in court, in the summer of 2013, CUEVAS, a City of Waterbury employee and, at that time, the state representative for the 75th District, wanted to purchase a residence in Bristol with a Federal Housing Administration (“FHA”) loan.

The U.S. Department of Housing and Urban Development provides mortgage insurance on loans made through its FHA program and mortgages offered through the program are subject to certain restrictions, including restrictions on the funds that may be used to purchase properties.

CUEVAS, with the assistance of others, represented to the mortgage bank that he was using gifted funds to purchase the property when, in fact, the money was not gifted but was instead loaned to CUEVAS for the purpose of purchasing the property. 

Specifically, CUEVAS first represented to the mortgage bank that an individual who he identified as his nephew but, in fact, was a subordinate employee from the City of Waterbury, was providing him with cash to purchase the property as a gift.  When the mortgage lender asked for the “nephew’s” bank account statements to prove that he had the money to gift to CUEVAS, CUEVAS withdrew the mortgage application.  A few weeks later, CUEVAS had a different Waterbury employee, who CUEVAS identified as his “cousin,” “gift” him the $7,000.  Both individuals signed a HUD statement under oath that the funds were, indeed, a “gift” and that no repayment of the monies was expected.  However, as soon as the mortgage closed, CUEVAS re-paid the employee the $7,000. 

CUEVAS pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of five years.  Judge Meyer scheduled sentencing for September 21, 2016. 

CUEVAS resigned from the Connecticut General Assembly in March 2016.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TED HAKEY, JR., 48, of Meriden, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by three years of supervised release, for firing shots into the Baitul Aman Mosque in Meriden in November.

“We all have a right to worship freely and without fear of violence, and individuals who commit hateful, divisive and violent acts against others need to know that a prison term will be the end result,” said U.S. Attorney Daly.  “This is an appropriate sentence that balances the need for justice with the defendant’s genuine expressions of remorse and the victims’ plea for a sentence that didn’t include jail time.  Since the time of the shooting, the congregation of the Baitul Aman Mosque has turned this senseless and hateful crime into something positive – using their story as a way of raising awareness about the peaceful message of Islam.  Rather than just letting themselves be victims, they took a stand, reached out to the defendant, and offered him forgiveness and reconciliation.  Their generosity of spirit serves as a role model for all of us.  I thank the FBI, ATF, Connecticut State Police and Meriden Police Department whose superb efforts not only solved a hate crime, but also helped both heal and empower the victims in this case and the broader Muslim community in Connecticut.”

“This case highlights how law enforcement, the judicial system and our community working together can affect positive social change,” said FBI Special Agent in Charge Ferrick.  “This incident should serve as an educational tool and illustrate to everyone that ignorance and hate should never prevail.”

According to court documents and statements made in court, in the early morning hours of November 14, 2015, officers from the Meriden Police Department responded to citizen complaints about shots being fired around the area of 410 Main Street in Meriden, the location of the Baitul Aman Mosque.  On Sunday, November 15, 2015, a family who entered the Mosque to worship noticed damage to the interior walls and the drop ceiling of the Mosque and called the police.  Investigators determined that approximately three rounds shot from a high-powered rifle had penetrated the building, and another had hit an exterior area.  A preliminary analysis of the trajectory of the bullets indicated that they likely came from a high-powered rifle shot from the area of 380 Main Street, the house located closest to the Mosque, which is HAKEY’s residence.

In subsequent interviews with authorities, HAKEY admitted that he had shot a Springfield M1A rifle at the Mosque on November 14, 2015.

The investigation revealed that after HAKEY had learned about terrorist attacks that had occurred in Paris on November 13, 2015, he posted the following status to his Facebook account: “What is gonna be the breaking point to go “weapons free” against Islam?”

“Weapons free” is a military command to shoot at will.

HAKEY also sent a Facebook friend a private message saying: “I hate ISLAM!.”

HAKEY’s Facebook account also contained other evidence of animus toward Muslims and Islam.  For example, earlier in 2015, HAKEY had told a Facebook friend that he has “a mosque right next door” and that he had “observe[d] them with [his] binos [binoculars].”  In the same conversation, he said “All Muslims must die!!! I hate them all.”  In July 2015, he posted to Facebook: “If we all kill just 1 Muslim each tonight it will make a dent!.”

HAKEY was arrested on December 17, 2015.  On February 11, 2016, he pleaded guilty to one count of intentionally damaging religious property through use of a dangerous weapon.

During today’s sentencing proceeding, Dr. Mohammed Qureshi, the president of the Ahmadiyya Muslim Community, spoke on behalf of the Baitul Aman Mosque congregation.  Dr. Qureshi discussed the congregation’s interactions with HAKEY since the shooting occurred, detailed HAKEY expressions of remorse and asked Judge Shea to impose no additional term of incarceration.  Judge Shea noted that the congregation’s victim statement was both “rare and inspiring,” but also stated the need for general deterrence in sentencing HAKEY to a term of imprisonment. 

HAKEY, who is released on bond, was ordered to report to prison on August 15, 2016.

This matter was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the Meriden Police Department.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROBERT N. TRICARICO, 60, of Milford and formerly of Darien, waived his right to indictment and pleaded guilty yesterday in Hartford federal court to one count of wire fraud related to his misappropriation of more than $1.2 million from an elderly client.

Until April 2015, TRICARICO was a registered securities broker with the Financial Industry Regulatory Authority.  He was formerly employed or associated with various financial firms, including RNT Wealth Management, Northstar Wealth Partners, LPL Financial, and Wells Fargo Advisors Financial Network.

According to court documents and statements made in court, from January 2010 to June 2013, TRICARICO acted as a financial advisor for an elderly and infirm victim who had substantial assets.  TRICARICO misappropriated more than $1.1 million from the victim by writing numerous checks to himself or for his benefit without the victim’s authorization.  TRICARICO also liquidated a coin collection belonging to the victim, and he misappropriated checks made payable to the victim.  TRICARICO used the stolen funds to make personal expenditures.

In pleading guilty, TRICARICO also admitted that he defrauded two additional victims of $20,000 by falsely representing to them that he would use their investments for a business venture and guaranteed a rate of return.  In fact, TRICARICO used the victims’ funds for his own personal use.

As part of his plea, TRICARICO has agreed to pay restitution in the amount of $1,220,763.90 to the victims of his crime.

TRICARICO is scheduled to be sentenced by U.S. District Judge Michael P. Shea on September 20, 2016, at which time he faces a maximum term of imprisonment of 20 years.

This matter is being investigated by the Federal Bureau of Investigation and Greenwich Police Department, and prosecuted by Assistant U.S. Attorney David T. Huang.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAYMOND MORALES, also known as “Freddy,” 32, of New Haven, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of conspiracy to distribute and possess with intent to distribute oxycodone.

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

The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills.

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

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

Judge Thompson scheduled sentencing for October 11, 2016, at which time MORALES faces a maximum term of imprisonment of 20 years.

A total of 11 individuals have been charged as a result of the investigation.  Four of the defendants have previously pleaded guilty and also await sentencing.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALFRED CATINO, also known as “Alphonse Catino,” “Frank Ross,” “Frank Russo,” “Anthony Vitacco,” “Chico,” “the Old Man” and “Herbie,” 75, of Danbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 108 months of imprisonment, followed by five years of supervised release, for trafficking narcotics.

This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County.  A total of 16 individuals were charged as a result of the investigation, which revealed that CATINO and Demetrios “Jimmy” Papadakos were long-time associates who headed the narcotics trafficking ring.  

CATINO has been detained since arrest on May 8, 2012.  On June 24, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine, oxycodone and marijuana.

CATINO’s extensive criminal history includes multiple federal convictions for narcotics trafficking.  He received his first federal conviction in 1967 for selling 115 grams of heroin to an undercover DEA agent.  He was most recently convicted in 1998 and received a sentence of 140 months of imprisonment.

Papadakos, of Danbury, pleaded guilty and, on December 17, 2014, was sentenced to 121 months of imprisonment.

This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments.  The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that LARRY TALLEDO-TORREJON, 29, a citizen of Peru last residing in Stamford, pleaded guilty today in Hartford federal court to orchestrating a murder for hire scheme.

According to court documents and statements made in court, in early December 2015, TALLEDO-TORREJON, as part of a contract to purchase a restaurant in Stamford for $300,000, provided the seller of the restaurant with $150,000 in cashier checks and an additional $150,000 in checks drawn on bank accounts with insufficient funds.  On December 5, TALLEDO-TORREJON directed an individual who owed him $5,000 to follow the manager of the restaurant (“G.R.”) to his home in New York and to murder him.  In exchange for doing so, TALLEDO-TORREJON agreed to forgive the $5,000 debt and to pay the individual an additional $5,000 in cash. The individual subsequently contacted law enforcement to report the incident, and then contacted TALLEDO-TORREJON to tell him that he had kidnapped G.R. and was holding him.

On December 7, 2015, TALLEDO-TORREJON provided the individual with a manila folder containing two copies of a receipt that falsely stated that TALLEDO-TORREJON had provided G.R. with $150,000.  TALLEDO-TORREJON directed the individual to provide the receipts to G.R., coerce G.R. into signing them, and then kill him.  TALLEDO-TORREJON told the individual that his pre-existing debt had been cancelled, and also suggested that they could start a business kidnapping and extorting money from persons.

On December 8, TALLEDO-TORREJON made a complaint with the Stamford Police Department falsely claiming that G.R. had stolen $150,000 that TALLEDO-TORREJON had provided G.R. to complete the purchase of the restaurant.

TALLEDO-TORREJON was arrested on December 8 after the individual provided him with the receipts signed by G.R., and TALLEDO-TORREJON provided the individual with $500 in partial payment for the murder.

TALLEDO-TORREJON is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 7, 2016, at which time he faces a maximum term of imprisonment of 10 years.  He has been detained since his arrest.

This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that on Monday, DAQUONE JOHNSON, 24, of Bridgeport, was arrested on heroin distribution offenses.  The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

JOHNSON 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 May 9, 2016, a 30-year-old female was found unresponsive at a residence in Monroe.  Police and medical personnel responded to the scene and administered multiple doses of Narcan to the victim.  The victim, who did not respond to the Narcan, was transported to the hospital where she was pronounced dead.   While administering aide to the victim, hospital staff located unopened heroin folds on the victim’s person.  The substance within the folds later tested positive for heroin and fentanyl, and the Connecticut Office of the Medical Examiner has determined the victim’s cause of death to be acute heroin and fentanyl toxicity.

Based on an investigation that has included witness interviews and analysis of calls and text messages to and from the victim’s phone, the complaint alleges that the victim ordered heroin from JOHNSON on the day of her death.

JOHNSON was arrested on June 13, 2016, after law enforcement conducted a controlled purchase of heroin from him.  He appeared yesterday before U.S. Magistrate Judge William I Garfinkel in Bridgeport and was released on a $125,000 bond.

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, and the Monroe, Milford and Bridgeport Police Departments.  The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Middlebury Police Departments, and the Connecticut State Police.  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 ALEX GARCIA, 37, of Danbury, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to a federal firearms offense related to the January 17, 2000 murder of Mark Rebong in Danbury.

According to court documents and statements made in court, on January 17, 2000, at approximately 11:02 p.m.., Mark Rebong was discovered in the driver’s seat of an idling vehicle in the vicinity of Exit 2 off of I-84 in Danbury. Mr. Rebong had had been shot once in the head and died as a result of his injuries.

The investigation revealed that GARCIA was a member of the Almighty Latin King and Queen Nation (“Latin Kings”).  In late December 1999, there was ongoing dispute in Danbury between the Latin Kings and another criminal gang, the Crips.  On December 28, 1999, the dispute escalated as a result of the shooting of a high-ranking member of the Crips.

On January 17, 2000, GARCIA was a passenger in a vehicle traveling westbound on I-84.  The driver of the vehicle, a high-ranking member of the Latin Kings, saw Mark Rebong driving near them on the highway and told GARCIA to shoot at Rebong’s vehicle.  GARCIA then used an assault rifle to fire two rounds at the vehicle.  As a result, Mark Rebong was killed.

Mark Rebong was neither a member of a gang nor engaged in any criminal activity.

“This defendant brutally and senselessly murdered Mark Rebong mistaking him for someone else,” said U.S. Attorney Daly.  “Mark was a complete innocent gunned down while driving to work, which makes his death all the more tragic.  I thank the DEA, Danbury Police and State Police for never abandoning the search for Mark’s killers, and for achieving justice for Mark and his loved ones.  We hope that this conviction brings his family some measure of solace.  The investigation of this matter continues.”

GARCIA pleaded guilty to one count of use of a firearm during and in relation to a crime of violence.  Judge Meyer scheduled sentencing for September 20, 2016, at which time GARCIA faces a maximum term of imprisonment of life.

In a binding plea agreement, the parties have agreed that a sentence of 30 years of imprisonment is an appropriate disposition of this case.

GARCIA is in state custody serving an unrelated 40-year sentence.

This matter has been investigated by Drug Enforcement Administration New Haven District Office, the Danbury Police Department and the Connecticut State Police Western District Major Crime Squad, with assistance from the Connecticut Department of Correction and the Danbury State’s Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, announced that KEITH HAESSLY, 46, of East Hampton, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 240 months of imprisonment, followed by a lifetime term of supervised release, for using a computer to persuade minors to engage in unlawful sexual activity.

According to court documents and statements made in court, between approximately August 2013 and June 2015, HAESSLY, using video chat programs such as Skype and Omegle, posed as a young female and used previously-recorded videos of females to entice numerous boys to engage in sexual activity over webcams.  HAESSLY then made recordings of the boys engaged in sexual activity, and distributed some of the images he recorded to an individual in Virginia.

Analysis of HAESSLY’s computer revealed images and videos that depict more than 950 child victims.

“This defendant victimized hundreds of boys by enticing them to engage in explicit sexual acts over the internet, recording those acts, categorizing and storing the videos, and distributing some of the images to another individual,” said U.S. Attorney Daly.  “This sentence will ensure that a child predator will be neutralized for years to come.  I thank the FBI and the Connecticut Child Exploitation Task Force for thoroughly investigating this matter and attaining justice for the many victims of this pervasive crime.”

HAESSLY has been detained since his arrest on June 3, 2015.    At the time of his arrest, he was a member of the Connecticut Air National Guard.

On February 18, 2016, HAESSLY pleaded guilty to one count of use of an interstate facility to persuade a minor to engage in unlawful sexual activity.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, with the assistance of the Connecticut Air National Guard Office of Special Investigations.  The case was prosecuted by Assistant U.S. Attorneys Ray Miller and Neeraj Patel.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EARL HOBBY, 37, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.

According to court documents and statements made in court, on December 19, 2014, members of the New Haven Police Department responded to a call concerning a person with a firearm at 154 Frank Street in New Haven.  Arriving officers encountered HOBBY walking on Clover Street and attempted to stop him.  HOBBY resisted, and two officers were injured in the struggle.  After HOBBY was subdued, he was found to be in possession of two rounds of Winchester .38 Special ammunition.  A loaded Ruger .357 revolver and a quantity of heroin packaged for distribution also were found in the area.

Prior to December 2014, HOBBY had sustained multiple narcotics convictions and a weapon conviction.  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.

On January 21, 2016, HOBBY pleaded guilty to one count of possession of ammunition by a convicted felon.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL A. PETRO, 44, of Watertown, pleaded guilty today in Hartford federal court to one count of unlawful possession of a firearm and ammunition by a convicted felon.

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

PETRO’s criminal history includes a felony conviction for assault.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

PETRO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 14, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine up to $250,000.

PETRO is in state custody on unrelated charges.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two Hartford men who were involved in a gang-related narcotics trafficking ring were sentenced this week in New Haven federal court.

On June 8, U.S. District Judge Jeffrey Alker Meyer sentenced GABRIEL HORACE WILLIAMS-BEY, a.k.a. “G Money,” “Money” and “Mugga,” 27, to 96 months of imprisonment, followed by four years of supervised release.  On June 9, Judge Meyer sentenced SHAQILLE BROWN, a.k.a. “Shaq,” 23, to 18 months of imprisonment for violating his probation.

According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force, which includes the Hartford Police Department, into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity.  The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the WestHell street gang who, along with several associates, distributed crack cocaine in the Westland Street area of Hartford.  In March 2014, WILLIAMS-BEY supplied crack cocaine to Scott.

WILLIAMS-BEY’s criminal history includes multiple state narcotics convictions and a state firearms conviction.  He was on state probation at time of this offense.

On April 24, 2014, a grand jury returned a 52-count indictment charging Scott, WILLIAMS-BEY, BROWN and 22 others with various offenses.  WILLIAMS-BEY eluded capture for more than two months before he was arrested on June 30, 2014.  On May 5, 2015, he pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”).  He has been detained since his arrest.

On December 23, 2014, BROWN pleaded guilty to one count of using a telephone to facilitate the distribution of crack cocaine and, on August 24, 2015, he was sentenced to five years of probation.  BROWN had been detained from May 2014 until the date of his sentencing.

As a condition of probation, Judge Meyer ordered BROWN to take part in mental health counseling and drug treatment.  In early October 2015, BROWN missed a mental health treatment session and failed to notify the U.S. Probation Office that he had moved out of his apartment.

On October 14, 2015, Hartford Police stopped a car in which BROWN was a passenger.  The driver of the car, a convicted felon, possessed a distribution quantity of crack cocaine, and a search of the car revealed a loaded handgun with an obliterated serial number.  BROWN, who admitted that he had handled the firearm, was arrested and subsequently sentenced in state court to 18 months of imprisonment.

Yesterday, Judge Meyer sentenced BROWN to 18 months of imprisonment, followed by six months in a halfway house, for violating the conditions of his probation.  BROWN will begin serving his federal sentence when he completes his state sentence.

On March 21, 2016, Melkuan Scott was sentenced to 13 years of imprisonment.

This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division.  The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.

The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN ANATE, also known as “Pills” and “Che Pills,” 25, most recently of the Bronx, N.Y., pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of 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. 

In pleading guilty, ANATE admitted that he knew the victim was under the age of 18.

“The sex trafficking of minors is a form of modern day slavery,” said U.S. Attorney Daly.  “This defendant victimized a young runaway; a girl he knew was under the age of 18.  I thank the FBI and East Hartford Police Department for investigating this matter, recovering this victim, and preventing this defendant from victimizing any other girls or women for at least the next 10 years.”

Judge Bryant scheduled sentencing for September 14, 2016, at which time ANATE faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

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

This matter has been investigated by the Federal Bureau of Investigation and the East Hartford Police Department.  The case is being 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 A. BARILE, 52, of East Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 71 months of imprisonment, followed by three years of supervised release, for arson, insurance fraud, gambling and extortion offenses.

According to court documents and statements made in court, BARILE was a co-owner of Enzo’s Restaurant and Lounge, which was located on Main Street in Middletown.  By 2009, Enzo’s was facing financial difficulty, and BARILE began planning to cause a fire at Enzo’s in order to collect the insurance proceeds.  In November 2009, BARILE informed his co-owner about the plan and began consulting with others on how to start the fire to make it look like an accident.

On the evening of January 9, 2010, BARILE met and participated in conversations with others at Enzo’s about causing the fire the next morning.  BARILE placed greasy rags in the kitchen around the fryolators and applied grease to the kitchen walls.  Later in the evening, after the restaurant had closed, a fire began in the kitchen.  BARILE was aware that a fire was burning in the kitchen.  Rather than extinguishing the fire, BARILE transferred the fire to one or more of the greasy rags.  BARILE intentionally allowed the fire to burn and purposefully did not alert the fire department or anyone else about the fire.  BARILE then left the restaurant intending for the fire to damage or destroy the restaurant. 

The co-owner was inside Enzo’s at the time of the fire, and two individuals were inside a restaurant next door.  The Middletown Fire Department arrived a short time later, forced entry, rescued the co-owner and put out the fire.  By the time the fire was put out, the fire had already caused significant damage to the restaurant.

After the fire, BARILE sought payment from an insurance company for losses suffered as a result of the fire, and concealed his role in causing the fire from the insurance company and law enforcement.  The insurance company ultimately paid $189,787.69 to BARILE to settle the insurance claims related to the fire.

In addition, from at least 2010 through approximately January 2014, BARILE also conducted an illegal sports-related bookmaking operation.  This illegal gambling business involved at least five other people including sub-bookmakers.  During this time period, BARILE did not have any other employment or source of income, and the illegal sports-related bookmaking business was BARILE’s main source of income.  At times, the gambling business grossed more than $2,000 per day.

One bettor who repeatedly placed bets with BARILE’s gambling business eventually owed him approximately $50,000 from unpaid gambling losses.  On November 8, 2011, BARILE, along with two associates, met the bettor at a parking lot in Hartford.  At the meeting, BARILE tased the bettor with a Taser or similar device in order to punish him for not paying his debts and enforce collection of the payment.

As part of his sentence, BARILE was ordered to pay restitution to the insurance company in the amount of $189,787.69.  BARILE also was ordered to forfeit $165,287.69 that the government seized from BARILE’s bank account in November 2012 pursuant to a civil seizure warrant.

On February 4, 2016, BARILE pleaded guilty to one count of arson, one count of mail fraud, one count of conducting an illegal gambling business and one count of collecting an extension of credit by extortionate means.

BARILE, who is released on a $350,000 bond and under electronic monitoring, was ordered to report to prison on July 12, 2016.

According to court documents, BARILE was previously convicted in 1997 for conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and contempt of court stemming from his involvement in an organized crime-controlled illegal gambling business.

This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Middletown Police Department and the Connecticut State Police.  This case was prosecuted by Assistant U.S. Attorneys Anastasia E. King and Neeraj N. Patel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Jonathan Mellone, Acting Special Agent-in-Charge, U.S. Department of Labor – Office of Inspector General, Susan A. Hensley, Regional Director, U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), today announced that U.S. District Judge Robert N. Chatigny has found DANIEL CARPENTER, 62, formerly of Simsbury, guilty of 57 counts of conspiracy, mail and wire fraud, money laundering and illegal monetary transaction offenses stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of the defendant and other investors, also known as a stranger-originated life insurance scheme.

The verdict follows a five-week long bench trial before Judge Chatigny in Hartford that began on February 16, 2016 and concluded on March 21, 2016.  CARPENTER had waived his right to a trial by jury.

According to the evidence at trial, CARPENTER controlled a series of companies, based in Simsbury and Stamford, that developed the Charter Oak Trust (the “Trust”), an employee welfare benefit plan and trust whose primary objective was to secure insurance policies on the lives of elderly individuals that could be held by CARPENTER’s companies as investments, or resold on the life settlement market, which is a third-party market for life insurance policies.  Typically, insurance agents working with, for, or on behalf of CARPENTER and his companies approached elderly individuals (the “Straw Insureds”).  The agents promised to provide the Straw Insureds with free life insurance for two years, and, at the end of the two years, would attempt to sell the policies on the life settlement market.  In most cases, the agents promised the Straw Insureds that they would receive a portion of any sale proceeds. 

The evidence at trial established that CARPENTER, working with insurance agents, caused to be submitted to several insurance providers numerous insurance applications that contained several material misrepresentations, including falsely denying that third-parties were paying the premiums for the insurance, falsely denying discussions about the resale of the policies, falsely inflating the net worth and/or income of the insured, and falsely claiming that the insurance was being purchased for legitimate estate planning-related needs.  All applications were signed by CARPENTER’s brother-in-law, who acted as trustee of the Charter Oak Trust, which was to be the “owner” of all policies in the trust.  Moreover, the applications purported that the Charter Oak Trust was a bona fide welfare benefit trust under Internal Revenue Code Section 419(e), wherein employers would be making contributions to the Charter Oak Trust in order to fund the life insurance policies for the benefit of certain select employees.

The evidence further established that, in truth, no “employer” or Straw Insured ever paid a premium into the Charter Oak Trust.  Rather, the premiums were funded by loans primarily from another company headquartered in Simsbury and controlled by CARPENTER.  In many cases, those loans were, in turn, financed by another third-party financing company based in Stamford.  The loan arrangements were withheld from the insurance providers, who would not have issued policies had they known the true nature of the Charter Oak Trust, and had the insurance applications been filled out truthfully.

Based on the false applications that were submitted to the insurance providers, the Charter Oak Trust procured 84 insurance policies that had a total aggregate death benefit of more than $459 million on the lives of 76 different Straw Insureds.  In addition, another company controlled by CARPENTER received more than $12 million in commissions from the insurance providers, who would not have paid the commissions had they known about the false representations on the insurance applications and the true nature of the Charter Oak Trust. 

Finally, the trial evidence showed that one Straw Insured died within the first two years of the issuance of the two insurance policies on his life.  Those policies had been issued in late 2006 and early 2007 based on misrepresentations similar to those described above, specifically that his policies were not being funded by a third party and were not intended for resale.  The two insurance policies had a combined death benefit of $30 million, which the insurer paid to the Charter Oak Trust in May 2009.  At CARPENTER’s direction, the Charter Oak Trust failed to pay the $30 million to the Straw Insured’s beneficiary, and instead used the funds to pay for various expenses, including other insurance premiums that were related to the underlying fraud, as well as to purchase a home in Rhode Island.

Judge Chatigny has scheduled sentencing for August 26, 2016, at which time CARPENTER faces a maximum term of imprisonment of 20 years on each count of mail and wire fraud and conspiracy to commit mail and wire fraud, a maximum term of imprisonment of 20 years on each count of money laundering and conspiracy to commit money laundering, and a maximum term of imprisonment of 10 years on each count of making illegal monetary transactions.

CARPENTER is currently serving a 36-month term of imprisonment for a previous mail and wire fraud conviction in the District of Massachusetts.

This matter is being investigated by the U.S. Department of Labor – Office of the Inspector General, the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and the Special Inspector General for the Troubled Asset Relief Program.  The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Matthew Etre, Special Agent in Charge of HSI Boston, announced that a federal grand jury in Hartford returned a 23-count indictment today charging HAI VAN NGUYEN, 41, of Lynnwood, Wash., on charges stemming from fraud scheme targeting members of the Vietnamese community in Connecticut and other states.

As alleged in court documents and statements made in court, NGUYEN advertised through Facebook a purported avenue for legal sponsorship for individuals to come to the United States from Vietnam.  When contacted, NGUYEN guaranteed clients that he could obtain legal entry into the U.S. for their family members through his company, New Saigon Entertainment.  NGUYEN guaranteed a green card upon arrival in the U.S. and U.S. citizenship within five years.  Through fraudulent and false representations, NGUYEN convinced two Connecticut residents to assist him in recruiting clients for his purported company.  The Connecticut residents collected deposits towards NGUYEN’s $35,000 fee pursuant to more than 50 contracts from clients in Connecticut, South Carolina, Maine and Arizona.  Additional victims of NGUYEN’s fraudulent scheme have been identified in Ohio and Texas.

Through this alleged scheme, NGUYEN defrauded members of the Vietnamese community seeking legal entry for family members into the U.S. of more than $500,000. 

NGUYEN has been detained since his arrest on May 5, 2016.

The indictment charges NGUYEN with one count of conspiracy to commit wire and mail fraud, two counts of mail fraud and 20 counts of wire fraud.  The charges carry a maximum term of imprisonment of 20 years on count.

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

This matter is being investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.

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 an investigation into a recent drug overdose death of a teenager in Groton has resulted in federal heroin distribution charges against two individuals.  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.

ADELE BOUTHILLIER, 42, of Groton, was arrested today on a federal criminal complaint charging her with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute heroin.  RAMON GOMEZ, also known as “B.I.,” 40, of Uncasville, has been charged by complaint with the same offenses.

According the criminal complaint, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose.  The victim, a 17-year-old female, was administered two doses of NARCAN, which were deemed unsuccessful, before she was transported to the hospital and died later that morning.

It is alleged that GOMEZ brought the victim to the motel to engage in prostitution, and that the victim was staying in a room there with BOUTHILLIER.  On the morning of May 28, 2016, BOUTHILLIER purchased a quantity of heroin from GOMEZ and gave it to the victim, who snorted it.  At approximately 10:00 p.m. that day, BOUTHILLIER awoke to find the victim to be unresponsive with vomit coming out of her mouth.  BOUTHILLIER waited approximately four hours before calling 911.

Following her arrest, BOUTHILLIER appeared before U.S. Magistrate Judge Joan G. Margolis and was ordered detained.

GOMEZ is currently in state custody on related charges.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ELIJAH GRIFFIN, 25, of New London, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.

According to court documents and statements made in court, on April 30, 2015, members of the New London Police Department and the Connecticut State Police executed a state search and seizure warrant at GRIFFIN’s apartment on West Street in New London.  Inside a closet in GRIFFIN’s room, officers located and seized a loaded .38 caliber revolver and a loaded .45 caliber pistol.

GRIFFIN has a prior state felony conviction for sale of narcotics.  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.

GRIFFIN has been detained since his arrest on April 30, 2015.  On December 2, 2015, he pleaded guilty one count of possession of firearms by a previously convicted felon.

This matter was investigated by the New London Police Department, Norwich Police Department, Connecticut State Police and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan and Senior Assistant State’s Attorney Paul Narducci.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Bridgeport Police Chief Armando J. Perez announced that a federal grand jury in Bridgeport returned an indictment yesterday charging seven Bridgeport residents with heroin trafficking offenses.  All of the defendants were arrested this morning.

Charged in the eight-count indictment are:

KAREEM ROSEBORO, a.k.a. “Swiss,” 41
HARRY BLAKE, a.k.a. “Harry-O” and “O,” 33
MICHAEL BENNETT, 28
JONATHAN ZAYAS, 22
MARCUS MILTON, 50
GLEN PORTER, a.k.a. “Kuran,” 30
ROY TROTTER, a.k.a. “Nez,” 33

The indictment stems from a joint investigation conducted by the FBI’s Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force into the distribution of heroin in and around Bridgeport.  The investigation has included court-authorized wiretaps and controlled purchases of heroin.

During the course of the investigation and in association with today’s arrests investigators have seized multiple “bricks” of heroin, items used in the processing and packaging of heroin, and five firearms.  A brick of heroin contains 100 individual dose bags.

The indictment charges each defendant with conspiracy to possess with intent to distribute heroin.  If convicted of this offense, based on the quantity of heroin charged, ROSEBORO, BLAKE, BENNETT, ZAYAS and MILTON face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  PORTER and TROTTER face a maximum term of imprisonment of 20 years.

In addition, the indictment charges BLAKE, BENNETT, ZAYAS, MILTON, PORTER and TROTTER with one or more counts of possessing with intent to distribute heroin.

The defendants appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and are currently detained.

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.

This case has been assigned to U.S. District Judge Janet Bond Arterton in New Haven.

This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit. 

The case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds and H. Gordon Hall.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS GABRIEL ESTEVEZ, 24, formerly of Ozone Park, N.Y., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 126 months of imprisonment, followed by five years of supervised release, for trafficking heroin.

According to court documents and statements made in court, in March 2013, the DEA New Haven Task Force began investigating a heroin trafficking organization headed by members of the Estevez family who lived in New York and the Dominican Republic.  The Estevez organization, including CARLOS GABRIEL ESTEVEZ, distributed wholesale quantities of heroin to customers in New York, New Jersey and Connecticut.

On December 31, 2013, in response to court-authorized intercepts of calls and texts, investigators surveilled a co-defendant as he drove from Connecticut to a parking lot in New Rochelle, N.Y., where ESTEVEZ met him and provided him with two brick-like packages.  A Connecticut State Police trooper subsequently conducted a motor vehicle stop of the co-defendant as he was driving on I-95 in Milford and seized two bricks of heroin, each weighing approximately 500 grams, from a natural cavity in the vehicle’s wall.

ESTEVEZ has been detained since his arrest on September 11, 2014.  On December 8, 2015, a jury found him guilty of one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, one kilogram or more of heroin.

Judge Shea found that ESTEVEZ was responsible for the distribution of at least 30 kilograms of heroin.

This matter was investigated by the DEA New Haven Task Force, with the assistance of the DEA Hartford Task Force and the DEA in New York.  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.  The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Brian P. Leaming.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WAHEED ISLAM, 48, also known as “Max Paine,” formerly of Ansonia and Manchester, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 108 months of imprisonment, followed by three years of supervised release, for importing and distributing “Molly,” and for violating the conditions of his supervised release from a prior federal conviction.

According to court documents and statements made in court, in May 2014, the Ansonia Police Department received information that ISLAM was residing in Ansonia and was making and distributing “Molly.” Molly is a street name for MDMA.

In July 2014, a U.S. Postal Inspector reported to Ansonia Police that ISLAM had been receiving packages from China that were labeled as containing “rock sugar.”  On August 8, 2014, a package that had originated in China and was addressed to ISLAM’s post office box in Ansonia was intercepted at JFK International Airport.  U.S. Customs and Border Patrol agents opened the package and found it to contain approximately one pound of ethylone, a Schedule I controlled substance that is a stimulant closely related to methylone, MDPV, MDMA and MDEA.  A second package originating from China had been delivered to the Ansonia branch of the U.S. Post Office and was awaiting delivery to ISLAM.  On August 11, 2014, HSI agents opened the second package and found approximately 1.1 pounds of the same substance.  ISLAM was arrested on August 12, 2014, after he arrived at the post office in Ansonia to pick up the package.

On August 15, 2014, another package destined for ISLAM was intercepted by U.S. Customs and Border Patrol.  A search of the package revealed approximately 2.3 pounds of ethylone.

ISLAM has been detained since his arrest.  On March 3, 2016, he pleaded guilty to one count of conspiracy to import a controlled substance into the United States.

ISLAM’s criminal history includes multiple felony crimes of violence, including first degree assault and first degree robbery.  In addition, on May 6, 2011, he was sentenced in Hartford federal court to 18 months of imprisonment for illegally purchasing and possessing body armor.  He was on supervised release at the time of his most recent criminal conduct.

This matter was investigated by the Ansonia Police Department, Homeland Security Investigations, U.S. Postal Inspection Service and U.S. Customs and Border Patrol.  The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment today charging DERRICK WHITE, also known as “Fly,” 51, of Hamden, MALCOLM HAYNES, also known as “Black,” 25, of New Haven, and HOWARD BOOKERT, 18, of Hamden, with one count of armed robbery of a postal employee.  The indictment also charges WHITE and HAYNES with one count of armed bank robbery.

The indictment alleges that, on April 21, 2016, WHITE, HAYNES, and BOOKERT entered the U.S. Post Office located at 75 Farwell Avenue in West Haven, stole money and other government property, and put the life of a postal employee and others in jeopardy by the use of a dangerous weapon.

The indictment further alleges that, on April 21, 2016, WHITE, HAYNES, and another person known to the grand jury used force, violence and intimidation to rob $9,287 from a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden, putting in jeopardy the life of a person by the use of a dangerous weapon.

WHITE and BOOKERT have been detained since April 21, 2016, when they were apprehended in New Haven and arrested on related state charges.  HAYNES has been detained since his arrest on related state charges on May 23, 2016.

If convicted, the defendants face a maximum term of imprisonment of 25 years and a fine of up to $250,000 on each count.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Allison C. Lerner, Inspector General of the National Science Foundation (“NSF”), today announced that AQUATIC SENSOR NETWORK TECHNOLOGY, LLC, (“AQUASENT”) and several of its officials and employees, namely Dr. Jun-Hong Cui, Dr. Yong Ma, Dr. Shengli Zhou, Dr. Zhijie Shi, and Juanjuan Liao, have entered into a civil settlement agreement with the government in which the company and the named officials will pay $400,000 to resolve allegations that they violated the federal False Claims Act and the common law in the management of federally-funded grants awarded to AQUASENT by the NSF.

AQUASENT, based in Storrs, Conn., was formed in October 2007 with a focus on the development of underwater wireless communications and networking solutions.

The National Science Foundation (“NSF”) participates in the government’s set-aside Small Business Innovation Research (“SBIR”) Program, which financially supports innovative small businesses through federally funded research and development with the goal of increasing competition, productivity, and economic growth. Grants made pursuant to the NSF’s SBIR Program are also designed to increase the incentive and opportunity for small firms to undertake cutting-edge, high risk, high quality scientific, engineering, or science and engineering education research.  The grants are awarded in successive phases (e.g., Phase I, Phase II) with the funding of successive phase grants predicated on compliance with certain requirements that must be met in order to participate and to receive funds from the NSF.  The requirements include  certifications as to the primary employment of the grantee’s principal investigator; certifications as to the truth and accuracy of information contained in the SBIR Program proposals for funding, including the location and size of the grantees’ facilities and the identities of any third party investors; the submission of a Financial Management Systems Questionnaire (“FMSQ”) that NSF uses to ensure that accounting and timekeeping requirements are understood and followed; and the submission of project reports that are certified as truthful and accurate.

Since 2008, AQUASENT has received approximately $924,618 in federally-funded grants under the NSF’s SBIR Program.

After a lengthy investigation, the government contends that it has certain civil claims against AQUASENT arising from alleged: 1) misrepresentations and false certifications made to NSF, prior to the award of the Phase I grant, involving the principal investigator’s primary employment at AQUASENT and the size and scope of AQUASENT’s facilities; 2) misrepresentations made to NSF prior to the award of the Phase II grant, including the submission of a false FMSQ purporting to detail, among other matters, AQUASENT’s time and effort policies and procedures, including the maintenance of bi-weekly timesheets; 3) misrepresentations made to NSF during the conduct of the Phase I and Phase II grants that resulted in the release of incremental funding, including false certifications as to the Phase I principal investigator’s primary employment with AQUASENT and the submission of Phase II project reports misrepresenting that the funds expended on time and effort were supported by timesheets or other time and effort documentation; 4) misrepresentations to NSF’s Office of Inspector General (“OIG”) in connection with its investigation about the submission of multiple false timesheets in response to OIG’s requests and subpoenas; and 5) misrepresentations to NSF in connection with the identity and number of third party investors, whose investment NSF was asked to match in the Phase IIB grant application.

 “In order to ensure that federal research funds are managed wisely and efficiently, all recipients of federal grants must strictly adhere to the regulations applicable to those grants,” said U.S. Attorney Daly.  “Failure to do so can result in significant consequences.

“Fraudulent schemes involving companies and individuals who repeatedly make false statements to the government in order to obtain scarce federal SBIR program research dollars will not be tolerated,” said NSF Inspector General Lerner.  “I commend the U.S. Attorney's office for its vigorous efforts in reaching a settlement that will return $400,000 to the government.”

U.S. Attorney Daly noted that AQUASENT cooperated with the government’s investigation.

The False Claims Act provides for up to treble damages and penalties of $5,500 to $11,000 per false claim submitted to the Government.

The matter was handled within the U.S. Attorney’s Office by Assistant U.S. Attorney William A. Collier and Auditor Susan N. Spiegel.

U.S. Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that REM CONNECTICUT COMMUNITY SERVICES, INC. (“REM”) has entered into a civil settlement agreement with the federal and state governments in which it will pay $1.5 million to resolve allegations that it received overpayments from the Connecticut Medicaid Program.

REM, formerly located in Middletown, Conn., operated various group homes that provided residential and day services to the intellectually disabled and at-risk youth.  REM ceased operating in Connecticut at the end of 2014.

The allegations against REM arose from REM’s submission of Annual Reports of Residential and Day Services (“cost reports”) to the State of Connecticut related to its operation of group homes during the period from July 1, 2007 through June 30, 2014.  The government contended that REM reported certain interest expenses as allowable costs in the cost reports that were in fact not allowable under the State of Connecticut’s Cost Standards.  As a result, the government alleges that REM received overpayments that it was not entitled to receive from the Connecticut Medicaid Program.

“Providers who bill government health insurance programs, such as Medicaid, must scrupulously follow the rules and regulations, 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 federal health care programs that they are not entitled to receive.”

To resolve its liability, REM will pay $1.5 million to the federal and state governments.  Part of the settlement amount will be satisfied by the government retaining $1,189,025 that had been suspended by the State of Connecticut because of REM’s questionable billing practices.  The additional $310,975 will be paid by REM collectively to the federal and state governments at the time the settlement agreement is executed.

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services.  The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Richard M. Porter 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.

Kristian Saucier, 29, of Arlington, Vermont, pleaded guilty today before U.S. District Judge Stefan R. Underhill of the District of Connecticut to one count of unauthorized possession and retention of national defense information.

The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Deirdre M. Daly of the District of Connecticut.

According to court documents and statements made in court, from September 2007 to March 2012, Saucier served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Connecticut.  On at least three separate dates in 2009, Saucier used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria, documenting the major technical components of the submarine’s propulsion system.

On Jan. 19, 2009, Saucier took two photos, one of the auxiliary steam plant panel and the other of the reactor compartment viewed through a portal.  On March 22, 2009, Saucier took two photos that, when placed side by side, provided a panoramic array of the maneuvering compartment, the room from which the propulsion system of the boat is operated.  On July 15, 2009, Saucier took two photos documenting the reactor head configuration of the nuclear reactor and a view of the reactor compartment from within that compartment.

Saucier had a secret clearance and knew that the photos depicted classified material and that he was not authorized to take them.  He retained these photos and failed to deliver them to any officer or employee of the United States entitled to receive it.

The investigation began in March 2012 when Saucier’s cellphone was found at a waste transfer station in Hampton, Connecticut.  Saucier was interviewed by the FBI and Naval Criminal Investigative Service (NCIS) in July 2012 and was confronted with the classified images from his phone.  Following that interview and in an effort to impede the federal investigation, Saucier returned to his home and immediately destroyed a laptop computer, a personal camera and the camera’s memory card.  Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of Saucier’s family.   

Saucier was arrested on a criminal complaint on May 28, 2015, and was subsequently indicted.

Judge Underhill scheduled sentencing for Aug. 19, 2016, at which time Saucier faces a maximum sentence of 10 years in prison and a fine of up to $250,000.  He is released on a $100,000 bond.

Saucier is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, New York.  He is awaiting an administrative separation board proceeding.

This matter has been investigated by the FBI and NCIS.  The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss of the District of Connecticut and Trial Attorney Will Mackie of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of the U.S. Attorney’s Office of the Northern District of New York.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Assistant Attorney General for National Security John P. Carlin announced that KRISTIAN SAUCIER, 29, of Arlington, Vt., pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of unauthorized possession and retention of national defense information.

According to court documents and statements made in court, from September 2007 to March 2012, SAUCIER served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Conn.  On at least three separate dates in 2009, SAUCIER used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria, documenting the major technical components of the submarine’s propulsion system.

On January 19, 2009, at approximately 4:00 a.m., SAUCIER took two photos, one of the auxiliary steam plant panel and the other of the reactor compartment viewed through a portal.  On March 22, 2009, at approximately 1:30 a.m., SAUCIER took two photos that, when placed side by side, provided a panoramic array of the Maneuvering Compartment, the room from which the propulsion system of the boat is operated.  On July 15, 2009, at 12:47 p.m., SAUCIER took two photos documenting the reactor head configuration of the nuclear reactor and a view of the reactor compartment from within that compartment.

SAUCIER had a Secret clearance and knew that the photos depicted classified material and that he was not authorized to take them.  He retained these photographs and failed to deliver them to any officer or employee of the U.S. entitled to receive it.

The investigation began in March 2012 when SAUCIER’s cellphone was found at a waste transfer station in Hampton, Conn.  SAUCIER was interviewed by the Federal Bureau of Investigation and Naval Criminal Investigative Service in July 2012 and confronted with the classified images from his phone.  Following that interview and in an effort to impede the federal investigation, SAUCIER returned to his home and immediately destroyed a laptop computer, a personal camera and the camera’s memory card.  Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of SAUCIER’s family.

SAUCIER was arrested on a criminal complaint on May 28, 2015 and was subsequently indicted.

Judge Underhill scheduled sentencing for August 19, 2016, at which time SAUCIER faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.  He is released on a $100,000 bond.

SAUCIER is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, N.Y.  He is awaiting an administrative separation board proceeding.

This matter has been investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service.  The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss, and Trial Attorney Will Mackie from the Justice Department’s National Security Division, with the assistance of the U.S. Attorney’s Office for the Northern District of New York.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAUKAT G. DALAL, also known as Shaukathusein Dalal, 55, of East Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to four months of imprisonment, followed by six months of home confinement and three years of supervised release, for tax evasion.  He also was ordered to pay a $3,000 fine.

According to court documents and statements made in court, DALAL was employed by the State of Connecticut as a Fiscal Administration Assistant, and also owned and operated a separate tax preparation business, Tax Preparation SVS Inc.  For the 2009 through 2011 tax years, DALAL, who had prepared more than 250 tax returns as part of the tax preparation business, did not deposit all of the gross receipts from the business into his business bank account and subsequently understated his gross receipts on his federal tax returns.

DALAL and his wife also owned Ameen LLC, a holding company that owned 25 rental units in an East Hartford condominium complex.  DALAL performed virtually all of the work for the real estate business, including collecting rent receipts, pricing the units, organizing repairs and maintenance, depositing rent receipts, paying the bills and maintaining the books and records.  DALAL did not deposit a substantial portion of rent receipts, often paid to him in cash, into Ameen LLC’s business bank account and substantially underreported both the applicable income and taxes due and owing on his 2009 through 2011 federal tax returns.

Through this scheme, DALAL failed to report nearly $400,000 in income.

Judge Underhill ordered DALAL to pay $97,289 in back taxes, plus applicable penalties and interest.

On December 2, 2015, DALAL pleaded guilty to one count of tax evasion.  He was ordered to report to prison on July 20, 2016.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ORLANDO ESTRADA, 26, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, this matter stems from an investigation conducted by the New Haven Police Department and the FBI’s New Haven Safe Streets Task Force.

On December 15, 2014, New Haven Police encountered ESTRADA and another male in an improperly-parked vehicle in the Fair Haven section of New Haven.  When officers approached the car, the other occupant, who was in the driver’s seat, attempted to flee the scene and was observed throwing a packet before he was taken into custody.  Officers located the packet, which was found to contain crack cocaine.

 An officer conducted a search of ESTRADA, who had been in the passenger seat of the car, and located a laser sight for a handgun in one of ESTRADA’s pockets.  ESTRADA then advised the officer that there was a loaded pistol under the passenger seat.  The officer seized the firearm and ESTRADA was arrested.

Prior to December 2014, ESTRADA had been convicted of multiple felony offenses.

ESTRADA has been detained since his arrest.  On June 11, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

The FBI’s New Haven Safe Streets Task Force includes participants from the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction.

This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven has returned an indictment charging BRANDON WILLIAMS, also known as “14K,” 35, of Bridgeport, with one count of sex trafficking of a minor and one count of sex trafficking by force, fraud or coercion.

The indictment was returned on May 17, 2016.  WILLIAMS appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.

As alleged in the indictment, between approximately July 10 and August 26, 2015, WILLIAMS forced a minor victim to engage in commercial sex acts.

WILLIAMS has been detained since his arrest on related state charges on August 26, 2015.

The charge of sex trafficking of a minor carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and the charge of sex trafficking by force, fraud or coercion carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.

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

 This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Bridgeport Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging six men with fraud and conspiracy offenses for allegedly staging car accidents for the purpose of defrauding automobile insurance companies.  The nine-count indictment was returned on May 18, 2016, and was unsealed yesterday.

Charged in the indictment are:

MACKENZY NOZE, also known as “Ken Ken,” 31, of Norwich
JONAS JOSEPH, 32, also known as “James,” of Norwich
FRANDY DUGUE, 39, also known as “Jimmy,” of Norwich
CARLINS CALIXTE, 32, of Norwich
JACQUES FLEURIJEUNE, 26, also known as “Magic,” of New London
PIERRE JEUDY, 56, of Norwich

As alleged in the indictment, the defendants and others deliberately staged approximately 50 automobile accidents in and around New London County.  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.

FLEURIJEUNE, JEUDY and DUGUE were arrested on May 20, and NOZE and CALIXTE were arrested on May 23.  NOZE and FLEURIJEUNE are detained and DUGUE, CALIXTE and JEUDY are released on bond.

JOSEPH is being sought by law enforcement.  Citizens with knowledge of his whereabouts, or with information that may be helpful to the investigation of this matter, are encouraged to call the FBI at 203-777-6311, or the Norwich Police Department at 860-886-5561.

NOZE, DUGUE, CALIXTE, FLEURIJEUNE, and JEUDY are citizens of Haiti.  DUGUE, CALIXTE and JEUDY are lawful permanent residents of the U.S.

The indictment charges each defendant with one count of conspiracy to commit mail and wire fraud, and multiple counts of mail and/or wire fraud.  Each charge carries a maximum term of imprisonment of 20 years.

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.

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 a grand jury in New Haven returned an indictment today charging ELLSWORTH ROBERTSON, also known as “S,” 35, of Hartford and New London, with narcotics and firearm offenses.

ROBERTSON was arrested on a federal criminal complaint on May 18, 2016.  The complaint alleges that, on November 7, 2015, ROBERTSON was found in possession of distribution quantities of cocaine and crack cocaine in the wake a stabbing incident at the Mohegan Sun casino.  Following his federal arrest, a court-authorized search of ROBERTSON’s New London apartment revealed more than two kilograms of cocaine, a quantity of heroin, thousands of dollars in U.S. currency, and other drug evidence.

The indictment charges ROBERTSON with possession with intent to distribute cocaine, possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, use of a firearm in furtherance of a drug trafficking offense, and possession of a firearm by a convicted felon.

If convicted of the charges contained in the indictment, ROBERTSON faces a maximum term of imprisonment of 20 years for possessing cocaine and heroin, a mandatory minimum term of imprisonment of five years for possessing 500 grams or more of heroin, a mandatory consecutive term of imprisonment of at least five years for possessing a firearm in furtherance of a drug trafficking offense, and a maximum term of imprisonment of 10 years for possession of a firearm by a previously convicted felon.

A separate warrant has been issued for ROBERTSON for violation of his federal supervised release.  On May 20, 2008, ROBERTSON was convicted in federal court for possession with intent to distribute cocaine base “crack”).  He was sentenced to 70 months of imprisonment for that offense and was on supervised releases when he is alleged to have committed the offenses charged in the indictment that was returned today.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New London Police Department and the Connecticut State Police’s Statewide Narcotics Task Force.  The case is being prosecuted by Assistant U.S. Attorney John H. Durham.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ROBERT V. GENTILE, 79, of Manchester, with new firearm offenses. 

GENTILE, who has a pending indictment for the alleged possession and sale of a loaded .38 Colt Cobra revolver to an individual he knew to be a convicted felon, is charged in the new indictment with possession of three additional firearms and a silencer, each of which was seized from his Manchester residence during a search conducted by the FBI on May 2, 2016.

The indictment alleges that GENTILE, who has been convicted previously of multiple felony offenses, was in possession of a .22 caliber Browning semi-automatic pistol, a 9mm Walther semi-automatic pistol, a .380 caliber RPB Industries, M11-Al semi-automatic pistol, and an unregistered silencer.

The indictment charges GENTILE with one count of possession of a firearm by a previously convicted felon, and one count of possession of an unregistered silencer.  Both charges carry a maximum term of imprisonment of 10 years.

According to court documents and statements made in court, GENTILE was on supervised release from a prior federal conviction at the time he is alleged to have committed these latest offenses.  If he is found to have violated the terms and conditions of his supervised release, he faces additional penalties.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane today announced that a federal grand jury in New Haven has returned an indictment charging RONNETTE BROWN, 43, of Bristol, with 23 counts of health care fraud and one count of conspiracy to commit health care fraud.

Brown was arrested yesterday.  She appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges in the indictment, and was released on a $100,000 bond.

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

The indictment alleges that Brown owned and operated WeMPACT, LLC, a social services business with offices in Bristol and Torrington.  Between August 2010 and April 2014, Brown billed Medicaid for psychotherapy services that were not performed.  The indictment separately alleges that Brown conspired with Beverly Coker and another unnamed individual to bill Medicaid for psychotherapy services that represented Coker had performed the services, when in fact the services were provided by unlicensed individuals, or were not provided at all.

Each of the 24 counts in the indictment carries a maximum term of imprisonment of 10 years.

According to court documents and statements made in earlier court proceedings, Coker, a licensed clinical social worker, owned and operated New Beginnings Family Center, LLC, in Hartford.  On April 8, 2016, Coker, 68, of Windsor, waived her right to indictment and pleaded guilty to one count of health care fraud, admitting that between October 2010 and November 2011, she engaged in a scheme to defraud Medicaid by permitting two individuals to bill Medicaid for psychotherapy services using Coker’s Medicaid provider number.   The services were either performed by unlicensed individuals or not performed at all.  Under the scheme, Coker kept 30 percent of the proceeds, and paid the remaining 70 percent to the other two individuals.  As part of her plea, Coker admitted to defrauding Medicaid of approximately $214,555 through the scheme.

In addition, on May 2, 2016, Anne Charlotte Silver, 62, of Morris, pleaded guilty to one count of health care fraud.  Silver, a licensed clinical social worker, owned and operated Silver Counseling Services, LLC, in Canton and Bantam.  As part of her guilty plea, Silver admitted that between June 2011 and July 2015, she engaged in a scheme to defraud Medicaid by permitting an unnamed individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number.   The services were either performed by unlicensed individuals or not performed at all.  Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to the other two individuals.  Silver admitted to defrauding Medicaid of approximately $1.6 million through the scheme.

Coker and Silver await sentencing.

“Behavior health specialists provide individuals of all ages the critical counseling needed to address serious mental health conditions,” said U.S. Attorney Daly.  “It is imperative that providers both deliver needed care to their patients, and bill Medicaid and other insurance programs honestly and accurately.  This ongoing investigation into the activities of a handful of unscrupulous providers is the result of coordination and joint investigation by HHS-OIG, the Medicaid Fraud Control Unit, the Attorney General’s Office, and our Office.  We also appreciate the invaluable work of the Connecticut Department of Social Services in identifying Medicaid fraud and promptly referring matters to law enforcement.  Through this partnership, we will continue to work to identify Medicaid fraud and bring civil and criminal prosecutions wherever warranted. ”

“Working with our federal and state partners, we will continue to protect the integrity of Medicare and Medicaid, which are designed to ensure the most vulnerable members of society receive the healthcare services they need,” said Special Agent in Charge Coyne.

“This is yet another example of how much we can achieve when agencies at all levels of government work together in collaboration,” said Chief State’s Attorney Kane.  “The charges announced today also will hopefully put all health care providers on notice that we are committed at all levels of government to detecting, investigating and prosecuting fraud that steals scarce resources from the programs that serve people in need.”

As to Ronnette Brown, 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 prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.

U.S. Attorney Daly and Connecticut Attorney General George Jepsen also announced that Naimetulla Syed, M.D., a physician with a private practice in Newtown, has agreed to pay $422,641.70 to resolve allegations that Syed submitted false claims to Medicare and Medicaid.  The investigation revealed that on numerous occasions between July 2009 and December 2013, Syed billed Medicare and Medicaid for psychotherapy services using a code for individual psychotherapy lasting 45 to 50 minutes, face to face with a patient, and medical evaluation and management services.  In the vast majority of these cases, Syed saw his patients for between five and 30 minutes, at most, and did not perform medical evaluation and management services. 

This matter was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Gregory O’Connell.

“I appreciate the continued close coordination with the U.S. Attorney and our other federal and state agency partners on cases such as this, which seek to protect Connecticut taxpayer funded public healthcare programs from fraud and abuse,” said Attorney General Jepsen.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AMANDA GAMBARDELLA, 26, formerly of Hartford and Cheshire, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 46 months of imprisonment, followed by three years of supervised release, for operating a heroin processing mill in Hartford.

According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force received information that a drug trafficking organization was obtaining large quantities of heroin in New York City, transporting the drug to Connecticut in a vehicle equipped with a hidden compartment, and distributing it in the Hartford area.  The investigation revealed that GAMBARDELLA was employed by the organization to store and package heroin at her apartment on Adelaide Street in Hartford, and that she had rented a storage unit in East Hartford on behalf of the organization.

On November 4, 2015, investigators conducted a court-authorized search of the East Hartford storage unit and seized approximately $795,990 in cash.  On November 5, 2015, investigators searched the Adelaide Street apartment and seized a approximately 778 grams of heroin, as well as cutting agents, packaging materials and other paraphernalia associated with a large scale heroin processing mill.  The seized heroin included more than 17,000 bags packaged for street sale and approximately 200 grams of unpackaged heroin.

GAMBARDELLA has been detained since her arrest on November 5, 2015.  On February 29, 2016, she pleaded guilty to one count of possession with intent to distribute heroin.

The DEA’s Hartford Task Force includes participants from the Hartford, Wethersfield, Bristol, East Hartford, Manchester, New Britain and Willimantic Police Departments.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that ALIONIS PEREZ, 40, a citizen of Cuba last residing in New Jersey, and YOANDRYS CUE, 30, a citizen of Cuba last residing in Florida, have pleaded guilty in Hartford federal court to engaging in a conspiracy to burglarize outlet stores in six states between August and November 2013.  PEREZ also pleaded guilty to engaging in a separate conspiracy to burglarize stores in Kansas and Tennessee in August 2014.  CUE pleaded guilty on May 20, 2016, and PEREZ pleaded guilty today.

According to court documents and statements made in court, on August 2, 2013, PEREZ, CUE and others traveled from New Jersey to Connecticut.  On August 3, 2013, PEREZ, CUE and others broke into the Fossil store located in Clinton, Connecticut, disabled the alarm system and stole watches valued at approximately of $250,000.  Following the burglary, they returned to New Jersey with the stolen merchandise.

On August 18, 2013, PEREZ, CUE and others attempted to break into the Movado store located in Kittery, Maine.

On September 19, 2013, PEREZ, CUE and others broke into the Fossil store located in Miramar Beach, Fla., and stole watches valued at approximately of $170,000.

On October 4, 2013, PEREZ, CUE and others broke into the Fossil store located in Hagerstown, Md., and stole watches valued at approximately $750,000.

On October 24, 2013, PEREZ, CUE and others broke into the Fossil store located in Grove City, Penn., and stole watches valued at approximately $195,000.

On November 22, 2013, PEREZ, CUE and others traveled from New Jersey to Massachusetts and stole a van.  On November 23, 2013, PEREZ, CUE and others broke into the Michael Kors store in Lee, Mass., disabled the alarm system and stole watches and bag valued at approximately $500,000.  The conspirators then traveled from Massachusetts, disposed of the stolen van in Staten Island, New York, and returned to New Jersey with the stolen merchandise.

In relation to this scheme, PEREZ and CUE each pleaded guilty to one count of conspiracy to engage in the interstate transportation of stolen property.

PEREZ also pleaded guilty to the same charge in relation to a separate burglary scheme.

During the evening of August 7 or early morning hours of August 8, 2014, PEREZ and others burglarized a Radio Shack store located in Chesterfield, Mo.  However, the burglary was interrupted and they were able to steal only a small amount of cash.

The following evening, PEREZ and others burglarized a Sunglass Hut Store located in Leawood, Kan., and stole 623 pairs of sunglasses valued at approximately $113,000.

In the early morning hours of August 10, 2014, PEREZ and others burglarized a Radio Shack in Franklin, Tenn., and stole approximately 50 smartphones valued at approximately $28,000.  Later that day, PEREZ and his co-conspirators were arrested in a hotel room in Nashville, Tenn.  The property stolen from the Sunglass Hut in Kansas and Radio Shack in Tennessee was recovered in connection with the arrest.

In relation to this scheme, PEREZ was charged by indictment in the Middle District of Tennessee.  The case was transferred to the District of Connecticut for further prosecution.

PEREZ and CUE are scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on August 18 and August 12, respectively.  PEREZ faces a maximum term of imprisonment of 10 years and CUE faces a maximum term of imprisonment of five years.  Each defendant also faces a maximum fine of approximately $3.6 million, and an order of restitution in the amount of $1.865 million.  They are both detained.

This ongoing investigation is being conducted by the Federal Bureau of Investigation, Clinton (Conn.) Police Department, Kittery (Maine) Police Department, Walton County (Fla.) Sheriff’s Office, Washington County (Md.) Sheriff’s Office, Pennsylvania State Police, Lee (Mass.) Police Department, Berkshire County (Mass.) Sheriff’s Office, Franklin (Tenn.) Police Department and Nashville (Tenn.) Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Heather Cherry in the District of Connecticut, and Assistant U.S. Attorney Lee Deneke in the Middle District of Tennessee.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on May 20, 2016, PAUL CARPENTER, 64, of Easton, waived his right to indictment and pleaded guilty to one count of filing a false tax return.

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 personal expenses as deductible business expenses on his Schedule C relating to his chiropractic practice, including college tuition and numerous personal 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

Judge Bolden scheduled sentencing for September 7, 2016, at which time CARPENTER faces a maximum term of imprisonment three years.  CARPENTER has paid all back taxes, plus interest and penalties.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GEORGE CARABASE, 41, of Enfield, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment, followed by one year of supervised release, for tax evasion.

According to court documents and statements made in court, in 2010 and 2011 CARABASE failed to report to the Internal Revenue Service approximately $550,000 in gross receipts generated by Buona Vita Restaurant, a restaurant he operates in Enfield.

During the investigation of this matter, CARABASE admitted to an undercover IRS agent that he understated the restaurant’s gross receipts on his income tax returns and provided false numbers to his accountant.

On February 22, 2016, CARABASE pleaded guilty to two counts of tax evasion, admitting that he evaded payment of a total of $183,282 in income taxes when filing his income tax returns for 2010 and 2011.

To date, CARABASE has paid $60,000 in back taxes.  Judge Meyer ordered him to pay an additional $149,926 in back taxes and interest.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, New Britain Police Chief James P. Wardwell and Wethersfield Police Chief James Cetran, today announced that the following nine individuals were arrested today on federal charges related to the distribution of fentanyl, a powerful synthetic opioid:

JOHN CASADEI, 45, of Morris
JARED McBRIARTY, 31, of Bristol
KYLE PETERSEN, 30, of New Britain
CHARLES ORCUTT, 27, of Windsor
CARLOS ENRIQUEZ, 27, of Enfield
JESUS CORREA, 41, of New Britain
ISAAC ORTIZ, 35, of Newington
TOMASZ ZIOBRON, 30, of New Britain
DOMINIQUE GRECO, 29, of Cromwell

As alleged in documents and statements made in court, in late December 2015, the DEA’s Hartford Task Force and New Britain Police Department received information that PETERSEN was selling fentanyl powder, prescription pills and marijuana.  DEA Task Force Officers and the New Britain Police Department Special Services Unit initiated an investigation and made multiple controlled purchases of fentanyl from PETERSEN.  Subsequent court-authorized wiretaps revealed that CASADEI supplied fentanyl and various prescription pills to McBRIARTY, who in turn supplied them to PETERSEN.  Wiretaps further revealed that CASADEI used the darknet, a network that can only be accessed through the use of specific software or authorizations, to purchase large quantities of fentanyl that were shipped from China.  CASADEI also obtained and distributed various prescription pills, including Xanax and oxycodone.

It is alleged that PETERSEN sold fentanyl and other drugs to ORCUTT, ENRIQUEZ, CORREA, ORTIZ, ZIOBRON, and prescription pills to GRECO.  These defendants then sold the drugs throughout central Connecticut.

“We believe that this groundbreaking investigation has identified a major supplier of fentanyl in our state,” said U.S. Attorney Daly.  “Fentanyl is a highly dangerous synthetic opioid which can be up to 50 times more potent than heroin.  In the wrong hands, it’s deadly.  Here in Connecticut, like other parts of the country, we are battling an escalating epidemic of opioid abuse.  Tragically, this epidemic is leading to an increasing number of opioid deaths.  Toxicology reports for these overdose victims often reveal the presence of fentanyl.  This investigation has provided us with an important window into how fentanyl is winding up on our streets.  I thank the DEA’s Hartford Task Force and all of it members – notably the New Britain and Wethersfield Police Departments – and our other federal, state and local law enforcement partners, for their superb efforts to shut down this deadly fentanyl distribution network.  These defendants will now experience the full force of federal law.”

 “Opioid abuse is at epidemic levels, and fentanyl and heroin are claiming too many lives in Connecticut and throughout New England,” said DEA Special Agent in Charge Ferguson.  “Those affected are our neighbors, co-workers, friends and family members.  DEA is committed to bringing to justice those who put these deadly poisons on our streets and in the hands of those struggling with addiction.  This investigation demonstrates the strength of our collaborative law enforcement efforts in Connecticut to aggressively pursue anyone who distributes these lethal drugs.”

“After several months of intensive investigation, we are here today to report that this major source of fentanyl has been disrupted,” said New Britain Police Chief Wardwell.  “It is now up to us not to relax and to recommit to battling the increase of opioids on our streets.  The New Britain Police Department is a proud and active partner with the DEA as we work together to eradicate these drugs and stop the death and heartache they leave behind.  This investigation is one example of how effective our collaboration is and how committed we all are in addressing these issues that impact our city, as well as towns across the northeast and country.  Today, we have made some headway.  Tomorrow we will be right back at it to show those who want to bring these poisons into our communities that we will not stand for it – not now – not ever.”

“I can’t express my gratitude for allowing us to be involved and for being able to contribute to such an important investigation,” said Wethersfield Police Chief Cetran.  “I am very proud of our participation in this operation that has resulted in the taking off the streets a significant amount of fentanyl and those who traffic in this drug.  Fentanyl has killed too many people in our state.  This is a prime directive of law enforcement: Protecting people.”

CASADEI, McBRIARTY and PETERSEN are charged by criminal complaint with conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.  PETERSEN is also charged with possession with the intent to distribute, and distribution of, at least 400 grams of fentanyl.

ORCUTT, ENRIQUEZ, CORREA, ORTIZ, ZIOBRON and GRECO are charged by complaint with conspiracy to distribute, and to possess with intent to distribute, controlled substances, an offense that carries a maximum term of imprisonment of 20 years. 

In association with today’s arrests, law enforcement executed 10 search warrants and seized approximately 2.5 kilograms of suspected fentanyl, approximately two kilograms of suspected molly, approximately 50,000 suspected counterfeit Xanax pills, approximately 40 pounds of marijuana, butane hash oil (BHO) and steroids.  Agents also seized approximately $500,000 in cash.

Following their arrests, the defendants appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford.  Eight of the defendants are detained, and ORCUTT was released on a $10,000 bond.

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.

The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments.  Agencies assisting the investigation include the U.S. Marshals Service, U.S. Postal Inspection Service, Homeland Security Investigations, New Britain State’s Attorney’s Office and Connecticut State Police.

This case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS CEDILLO, 33, last residing in Sylmar, Calif., pleaded guilty today in Hartford federal court to one count of possession with intent to distribute one kilogram or more of heroin.

According to court documents and statements made in court, on November 14, 2013, members of the Drug Enforcement Administration’s New Haven Task Force followed a white Cadillac Escalade that CEDILLO was driving to a store where CEDILLO purchased items used in the processing and packaging of illegal drugs.  After the Escalade traveled to a garage in Wolcott, agents approached CEDILLO, secured him in handcuffs and received consent from the owner of the property to search the garage.  Agents observed that the vehicle, which was raised on a lift, had sheet-rock screws coming through the metal of the bottom of the car.  After a canine alert, agents located and opened a trap in the rear of the vehicle and retrieved approximately six kilograms of heroin.  CEDILLO was arrested at the time.

A subsequent search of a residence in Danbury connected to CEDILLO revealed approximately $400,000 in cash.

CEDILLO has been detained since his arrest.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 10, 2016.

This matter has been investigated by the DEA’s New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Derby and Meriden Police Departments, and the U.S. Marshals Service.  The case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to six months of imprisonment, followed by three years of supervised release, for stealing more than $200,000 in Social Security benefits that had been deposited into his deceased grandmother’s bank account.  NEWMAN must serve the first three months of his supervised release in home confinement.

According to court documents and statements made in court, NEWMAN’s grandmother was entitled to receive Social Security Administration (“SSA”) monthly benefit payments starting in 1980.  The payments were made by direct deposit into a bank checking account.  Although NEWMAN’s grandmother passed away in October 1996, the direct deposit payments continued until June 2014.

In March 2011, NEWMAN began accessing the funds in the account to make electronic payments on his credit card.  From the time of his grandmother’s death until June 2014, approximately $220,729 of monthly benefit payments, net of Medicare premiums, were directly deposited into her bank account.  NEWMAN used $218,079 of the funds for his own benefit.

Judge Hall ordered NEWMAN to make full restitution to the Social Security Administration.

On December 14, 2015, NEWMAN pleaded guilty to one count of theft of public funds.

This matter was investigated by the Social Security Administration Office of Inspector General.  The case was prosecuted by Assistant U.S. Attorney Anastasia Enos King.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL JESSE CONRAD, 31, of New Hartford, waived his right to indictment and pleaded guilty today before U.S. District Magistrate Judge Robert A. Richardson in Hartford to one count of production of child pornography.

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

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

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

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

CONRAD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on August 17, 2016, at which time CONRAD 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.

Since his arrest on September 10, 2015, CONRAD has been released on bond and placed on electronic monitoring.

This matter is being investigated by the Homeland Security Investigations and the 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.