District of Connecticut

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 STAG ARMS LLC, a firearms manufacturer in New Britain, and its former owner and president, MARK MALKOWSKI of Farmington, were sentenced today in Hartford federal court.  Senior U.S. District Judge Alfred V. Covello ordered STAG ARMS to pay a $500,000 fine and MALKOWSKI to serve two years of probation and pay a $100,000 fine.

In December 2015, STAG ARMS pleaded guilty to a felony charge of possession of a machine gun not registered to the company, and MALKOWSKI pleaded guilty in his individual capacity to a misdemeanor charge of failure to maintain proper firearm records. 

“This is the first time nationwide that a major firearms manufacturer has been convicted of a felony and had its license revoked, effectively forcing the company to be sold to new owners,” said U.S. Attorney Daly.  “Stag displayed a systemic and egregious disregard of federal firearms regulations. The company was unable to account for hundreds of semi-automatic rifles and possessed over sixty unregistered machine guns. This prosecution should serve as a warning to those in positions of leadership in the firearms manufacturing industry that failure to maintain strict compliance with firearms laws will have serious consequences.  By properly marking and serializing firearms, accurately maintaining records in conformity with the Gun Control Act and properly registering firearms, gun manufacturers act as the first line of defense in ensuring that firearms are traceable and do not fall into the wrong hands.”

“ATF relies on individuals and corporations who are licensed to manufacture firearms to mark them in accordance with the law, keep thorough records of the manufacture and disposition of all firearms, and maintain their inventory in secure facilities to prevent their theft or loss,” said ATF Special Agent in Charge Kumor.  “When firearms licensees fail to comply with these federal regulations and laws they open the door for untraceable firearms to wind up on the street in the hands of traffickers and criminals.”

The possession, by private citizens, of machine guns manufactured after 1986 is prohibited, and licensed manufacturers of machine guns are required to stamp a unique serial number on each machine gun and register it with ATF within one business day of manufacture.  It is a violation of federal law for a licensed manufacturer to fail to mark a firearm with a serial number and for anyone to tamper with a firearm serial number or possess a firearm with an obliterated serial number.  It is also against the law for anyone to possess a machine gun that is not registered to them.

According to court documents and statements made in court, STAG ARMS (“STAG”) obtained a federal firearms license (“FFL”) to manufacture firearms in 2003, and obtained a license for a second location in 2009. 

In 2007, the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) cited STAG for a number of regulatory violations.

In July 2014, ATF Industry Operations Investigators performed another firearms compliance inspection at STAG.  The investigation revealed that, in violation of the National Firearms Act, STAG had possession of a total of 62 machine guns and machine gun receivers that were registered to another entity, or were not registered at all.

A receiver is the key regulated part that is considered a machine gun.  All other parts necessary to transform a receiver to a fully functional semi-automatic or automatic machine gun can be purchased over the Internet.

The investigation also discovered that, in violation of the Gun Control Act, STAG had failed in thousands of instances to adequately document the manufacture and disposition of firearms – machine guns as well as assault weapons – making them more susceptible to theft or loss.  Many of the record-keeping violations that were uncovered were similar to violations for which STAG was cited in 2007.  For example, inspectors discovered more than 3000 un-serialized receivers on the premises without any record of their manufacture or acquisition, and more than 3000 firearms that were transferred by STAG without properly being recorded.  Inspectors were able to reconcile the majority of these transfers from other paperwork on site, but found more than 300 instances in which the disposition of the firearms could not be reconciled.  To date, approximately 200 firearms are reported as lost or stolen.

In September 2014, ATF executed search warrants at STAG’s two facilities on John Downey Drive in New Britain and seized dozens of machine guns that had not been marked and/or registered, as well as three machine guns with serial numbers that had been intentionally obliterated, or scratched out.

In October 2014, ATF issued a Notice of Revocation to STAG, revoking both federal firearms licenses held by STAG at it two facilities.  In the revocation notices, ATF alleged that STAG had knowledge of its recordkeeping and firearms marking responsibilities, but did not choose to comply.  STAG was permitted to continue operations pending the results of a hearing where STAG was afforded the opportunity to contest the revocations with its own witnesses and evidence, and to cross examine government witnesses.

On November 16, 2015, after consideration of the evidence presented at the hearing, ATF issued a revocation of both of STAG’s federal firearms licenses. 

Due its license revocation, on February 29, 2016, a sale of STAG was completed to an independent third party and the company is now under new ownership.

As part of the resolution of this case, STAG agreed not to challenge the license revocations in court, and to drop all ownership claims to the firearms seized by ATF.  In addition, MALKOWSKI divested himself of his interest in STAG and has agreed never again to hold an ownership or management position with respect to a firearms business.

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

The hard truth is that every year more police officers take their own lives than are killed in the line of duty by criminals. And for every officer who commits suicide, there are many more officers who, whether they recognize it or not, are suffering from the symptoms of Post-Traumatic Stress Disorder.

But this is not surprising when one considers all that we ask of our officers. Day in and day out, we expect them to apprehend armed and violent criminals, engage in high speed chases, notify next of kin that a loved one has died unexpectedly, respond to turbulent domestic violence calls, render first aid to a shooting victim or a badly-injured child, process horrific motor vehicle accidents and crime scenes, make split-second decisions that literally can be a matter of life or death, resolve tough legal questions on the spot in emerging and uncertain situations, and find overdose victims dead in public places or their own childhood bedrooms. These relentless demands exact an undeniable toll.

Added to this burden are the times when a small percentage of officers abuse their positions of authority. This abuse is unconscionable and sometimes even criminal. It weighs heavily on the vast majority of officers who honorably serve their communities. No one in a position of trust – a teacher, a doctor, a lawyer, a politician, a member of the clergy or a police officer – should ever violate his or her oath to serve others. Society is appropriately outraged whenever that trust has been violated. But the repercussions for police misconduct are unique and can be devastating. Not only have we seen wholesale community uprisings, but innocent officers have been murdered for no other reason than they were an officer in uniform. The reality of such senseless violence also looms over all officers and their families.

Nor is it surprising that the law enforcement community rarely talks about officer suicides or PTSD. Police work attracts a special breed:  People who will run toward gunfire and chase an armed felon. The culture of the profession is one that calls for exceptional courage delivered quietly and humbly. As a result, too many officers and agents suffer in silence, inhibited and unable to seek the help that others reach for in much less trying circumstances.

As Connecticut’s United States Attorney, I deeply admire and respect our law enforcement partners who put themselves at risk every day for our protection and safety. I am equally concerned for the well-being of these officers and their families. Officer wellness is a subject that our Office has championed. We are fortunate to have many forward thinking Chiefs of Police and leaders who are committed to ensuring that we meet the mental health needs of the men and women who serve us. This week, the Norwalk Police Department will hold a memorial honoring officers killed in the line of duty as well as those who took their own lives. And the Connecticut Police Chiefs Association will hold an Officer Wellness training, focused on managing the aftermath of trauma, which is open to all local, state and federal officers in the state.

We need to prioritize the well-being of our officers. The results will both improve relations with the public we serve, and provide personal and professional fulfillment for the men and women who keep us safe.

In 1962, President John F. Kennedy signed a proclamation that designated May 15 as Peace Officers Memorial Day and the week in which that date falls as Police Week. This week in particular, I salute all of law enforcement for your quiet courage and thank you for dedicating your lives to protecting us.

Deirdre M. Daly
U.S. Attorney, District of Connecticut
May 17, 2016

 

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WALTER CRAIG BRADWAY, 65, formerly of Glastonbury and currently residing in Holmes Beach, Fla., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 13 months of imprisonment, followed by three years of supervised release, for fraudulently obtaining more than $9 million in economic stimulus program funds in 2010 and 2011.  Judge Thompson also ordered BRADWAY to perform 600 hours of community service.

According to court documents and statements made in court, in 2009, Congress passed the American Recovery and Reinvestment Act, which included provisions for various economic stimulus programs funded in part or in whole by the United States.  These programs included the Specified Energy Property Program administered by the U.S. Department of the Treasury, which was referred to as the “Section 1603 program.”  The Section 1603 program, which was administered by the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado, provided funds to reimburse eligible applicants a portion of their costs for installing specific energy properties, including the installation of solar panel projects.

Applicants seeking reimbursement for their energy projects were required to submit supporting documentation including engineer-certified design plans for the project, vendor invoices reflecting the costs of installing the energy property and, for projects that were connected to an existing public utility, an interconnection agreement with that utility.  Under the rules of the Section 1603 program, reimbursements could not be made until the energy property in question was completed and placed in service.  The Department of the Treasury typically reimbursed 30 percent of the cost of approved Section 1603 applications.

BRADWAY was the owner and president of Glastonbury-based DataComm Services LLC (“DCS”).  In 2010 and 2011, BRADWAY, through DCS, submitted more than 300 applications for Section 1603 reimbursements for solar panel projects in Connecticut, Massachusetts, Florida, South Carolina, Pennsylvania, Rhode Island, Maine and California.  Many of these applications were fraudulent, however, because BRADWAY represented that the project was installed and in service when, in fact, the project had not been completed or even begun.  BRADWAY also overstated the size and cost of projects in order to increase the reimbursement amount.  In connection with many applications, BRADWAY submitted false documentation, including falsified engineer reports and fake interconnection agreements with local utility companies.  As a result of these fraudulent applications, BRADWAY received approximately $9,026,637 in funds that he was not entitled to.

BRADWAY voluntary disclosed his criminal conduct to the Department of Treasury.

Judge Thompson ordered BRADWAY to pay restitution in the amount of $8,935,266.50, which accounts for approximately $91,000 that BRADWAY has paid to date.

On February 1, 2016, BRADWAY pleaded guilty to one count of wire fraud.

This case was investigated by the U.S. Department of Treasury – Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Sarah Karwan.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES YOUNG, 30, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 50 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, on February 25, 2015, YOUNG was arrested after he had engaged law enforcement officers in a high-speed car chase that began in Bridgeport’s east end, continued on I-95 South and ended when YOUNG crashed into a snow bank after exited the highway in Fairfield.  During the chase, a witness saw YOUNG throw something from his car in the vicinity of Exit 24 in Fairfield.  A search of the area revealed a loaded Glock 22 .40 caliber firearm.

At the time of his arrest, YOUNG was on state probation following his conviction in 2010 for criminal possession of a firearm and possession of a weapon in a motor vehicle.  On October 9, 2015, he was found to have violated his probation and was sentenced to five years of imprisonment.

YOUNG has been detained since his arrest.  On January 22, 2016, he pleaded guilty in federal court to one count of possession of a firearm by a convicted felon.  Judge Shea ordered YOUNG’s federal sentence to run concurrently with his state sentence.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut State Police’s Statewide Urban Violence Cooperative Crime Control Task Force, Bridgeport Police Department and Fairfield Police Department.  The case was prosecuted by Assistant U.S. Attorneys Brian Leaming and David Nelson.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and  Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that on May 3, 2016, a federal grand jury in New Haven returned an indictment charging DAVID ADAMS, 55, of Old Saybrook, with tax evasion and filing a false tax return.  ADAMS, who was arrested on a federal criminal complaint on April 14, 2016, appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charges in the indictment.

As alleged in the indictment, ADAMS sold an online floral business in 2002, which accounted for a significant portion of $6,269,960 in taxable income he claimed on his 2002 tax return.  Although ADAMS represented to the IRS on or about August 8, 2003, that he was enclosing payment of $1,250,000, no such payment was enclosed and such tax was still outstanding as of June 2011.

The indictment further alleges that on or about June 7, 2011, ADAMS sold his partnership interest in another online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale.  Although he knew that he owed substantial taxes on that amount, ADAMS engaged in a number of affirmative acts to conceal and attempt to conceal this income in order to evade the assessment of a tax including:  (1) hiring an accountant to prepare his 2011 taxes and then failing to give accountant complete, accurate information by failing to disclose the $4,708,419.20 in income ADAMS received in 2011; (2) providing the accountant with false information about ADAMS’s estimated tax payments for the year, telling the accountant that he had paid $220,000 when in fact, ADAMS knew he had only paid $100,000 in estimated taxes for 2011; (3) causing the accountant to prepare his 2011 tax return with false and fraudulent information; and (4) representing to an IRS revenue officer who was responsible for collecting ADAMS’s delinquent tax payments and securing ADAMS’s overdue tax returns, that he had hoped to have funds to pay down his back tax liability (including tax liability associated with the 2002 sale), but that nothing had been “panning out.”  ADAMS failed to disclose to the revenue officer that he had received $4,708,419.20 in cash less than three weeks earlier.

The indictment charges ADAMS with one count of tax evasion, an offense that carries a maximum term of imprisonment of five years, and one count of filing a false tax return, an offense that carries a maximum term of imprisonment three years.

ADAMS owes approximately $4.6 million in back taxes, interest and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011, and 2012.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MELVIN CASTRO, also known as “Humacoa,” 23, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by five years of supervised release, for trafficking heroin and selling firearms.

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

The investigation revealed that CASTRO controlled the distribution of heroin in the Park Street, Babcock Street and Zion Street area of Hartford.  On 12 occasions, CASTRO sold a total of 2,704 bags of heroin to an individual working with law enforcement.  Wiretaps also captured numerous conversations in which CASTRO orchestrated hundreds of additional sales of heroin.  In addition, the Task Force orchestrated the purchase of six firearms from CASTRO during the investigation.

CASTRO has been detained since his arrest on June 15, 2015.  On February 3, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.

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

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 7, 2016, a federal grand jury in New Haven returned an indictment charging ELBERT LLORRENS, 23, and KYLE VALENTINE, 24, both of New Haven, with federal carjacking offenses.

The indictment alleges that, on January 1, 2016, LLORRENS and VALENTINE used a firearm and threats of violence to steal a 2015 Volkswagon Passat from two victims in Meriden.  The indictment further alleges that, on January 5, 2016, LLORRENS used a firearm and threats of violence to steal a 2006 Chevy Cobalt from a victim in New Haven.

The indictment charges LLORRENS with two counts, and VALENTINE with one count, of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 15 years.

The indictment was unsealed yesterday when LLORRENS and VALENTINE, who had been in state custody, appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges.  The defendants were ordered detained pending trial.

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 and the East Haven, Meriden, Milford and New Haven Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ROBERT TERRY BRUCE, 35, of Nashville, Tenn., pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of wire fraud stemming from a scheme to defraud contributors to an organization he established after the December 14, 2012 school shootings in Newtown.

According to court documents and statements made in court, BRUCE founded the 26.4.26 Foundation, an organization that began soliciting charitable donations in the aftermath of the December 14, 2012 school shootings in Sandy Hook, Connecticut for a variety of purposes, including “to help raise funds for increased school safety, families of victims, memorials to teacher heroes, awareness and prevention in schools across America.”

 In early 2013, BRUCE solicited and received contributions to 26.4.26 in connection with a charity athletic event in Gilford, N.H., called the Schools 4 Schools run.  BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through an online PayPal account by representing to potential donors that the purpose of the event was “to help raise funds for increased school safety, families of victims, memorials to teacher heroes, awareness and prevention in schools across America.”  BRUCE further represented to potential donors that “all proceeds will go to the 26.4.26 Foundation.”

Also in early 2013, BRUCE solicited contributions to 26.4.26 in connection with a charity athletic event in Tennessee called CrossFit Cares.   As he had in the New Hampshire event, BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through PayPal by representing to potential donors that “all proceeds will go to the 26.4.26 Foundation” and that the “mission of 26.4.26 is to provide funding for the families of victims, memorials for teacher heroes and to increase safety in schools across the country.”

Rather than using the funds raised to support his purported mission, BRUCE used most of the funds to enrich himself and to support his personal training business.  Several of the victim donors are from Connecticut.

Judge Thompson scheduled sentencing for August 30, 2016, at which time BRUCE faces a maximum term of imprisonment of 20 years.

BRUCE has been released on a $20,000 bond since his arrest on February 13, 2015.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan Wines.  U.S. Attorney Daly also acknowledged the critical assistance provided by the U.S. Attorney’s Office for the Middle District of Tennessee.

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 PAMELA MALLORY, 42, of Enfield, waived her right to indictment and pleaded guilty today in Hartford federal court to embezzling more than $840,000 from her employer, 360 Federal Credit Union.

According to court documents and statements made in court, MALLORY was employed as the lending manager of Windsor Locks-based 360 Federal Credit Union.  In her position, MALLORY had access to loan files and authorized loans, including home equity lines of credit (“HELOCs”).  From 2009 through 2016, MALLORY opened five different HELOCs in the name of a credit union member and increased the credit limit of those HELOCs on at least 15 occasions, all without the knowledge or consent of the credit union member.  Initially, MALLORY perpetrated this scheme by opening subsequent HELOCs to pay off earlier, smaller HELOCs.  Later in the scheme, rather than opening new HELOCs, she simply increased the credit limits on two of the fraudulent HELOCs to support her spending.

In order to evade detection, MALLORY made minimum, interest-only payments on the HELOCs from her own checking account.

When 360 Federal Credit Union discovered the scheme in January 2016, the credit union member’s property, which is worth less than $150,000, supported two HELOCs, each with credit limits of $417,000, that MALLORY had fully drawn down.

In total, MALLORY stole approximately $840,378.28 from 360 Federal Credit Union and used the proceeds of the scheme to pay her own creditors.

MALLORY pleaded guilty to one count of embezzlement by a credit union employee, a charge that carries a maximum term of imprisonment of 30 years.  She is scheduled to be sentenced on August 17, 2016, and is released on a $100,000 bond.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH SUDIK, 60, of North Franklin, waived his right to indictment and pleaded guilty yesterday in New Haven federal court to filing false tax returns.

According to court documents and statements made in court, SUDIK operated a dentistry practice, and also acted as a trustee of the Walter S. Sudik Trust, his uncle’s estate.  In 2010 and 2011, SUDIK took more than $248,000 from the Trust without authorization and was paid $35,500 by the Trust for fiduciary fees for his services as trustee and reimbursement for closing his dental office to act as trustee.  On his 2010 and 2011 federal tax returns, SUDIK willfully failed to report a total of $284,167 in unreported income and failed to pay $63,229 in income taxes.

With respect to his 2010 federal tax return, SUDIK falsely reported taxable income of $25,026 and a tax due of $1,419.  In his 2011 federal tax return, SUDIK falsely reported only $1,230 in taxable income and a tax due of $1,171.

SUDIK pleaded guilty to one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years and a fine of up to $250,000.  He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on July 27, 2016.

SUDIK has agreed to pay back taxes, plus penalties and interest.  In addition, he has agreed to pay full restitution to the four trust beneficiaries of the funds he took from the trust without authorization.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES COSTANZO, 38, of Ansonia, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 57 months of imprisonment, followed by three years of supervised release, for trafficking prescription narcotics.  He also was ordered to pay a $5,000 fine.

According to court documents and statements made in court, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into COSTANZO, who had been identified as an illegal distributor of narcotic pharmaceuticals.  The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that COSTANZO sold prescription narcotics to numerous customers from his Dwight Street residence.  The investigation further revealed that Brian Earl of North Haven supplied COSTANZO with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.

COSTANZO and Earl were arrested on January 23, 2014.  At the time of his arrest, COSTANZO possessed a 9mm handgun that was loaded with hollow-point ammunition, and $439 in cash.  A subsequent search of his residence revealed approximately 600 oxycodone pills, four firearms, ammunition, approximately $5,500 in cash, and more than 50 stored-value cards.

On February 27, 2015, COSTANZO pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone, and one count of knowingly engaging in a monetary transaction involving criminally derived property.

When he pleaded guilty, COSTANZO admitted that he used more than $72,000 in funds derived from his illegal drug enterprise to purchase a residence located at 85 Dwight Street.

COSTANZO has forfeited the Dwight Street property, as well as a residence located at 21 Winchester Street in Waterbury, a 2005 Mercedes Benz ML350, a 2000 Ford F150, and approximately $42,613.

COSTANZO has been detained since his arrest. 

Brian Earl pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone.  On July 17, 2015, he was sentenced to 37 months of imprisonment.

This investigation was conducted by the DEA’s New Haven Tactical Diversion Squad, the Ansonia Police Department and the Fairfield Police Department.  The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.

The case was prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN GOINS, 35, last residing in Waterbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession of a firearm by a convicted felon.

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

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

The charge of unlawful possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years.  A sentencing date is not scheduled.

GOINS has been detained since his arrest.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that BRADLEY COMMERFORD, 20, of Derby, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of distribution of heroin to an individual who is under 21 years of age.

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

According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad, Derby Police Department and Shelton Police Department have been investigating two non-fatal heroin overdoses that occurred in Shelton on February 16, 2016, and one fatal overdose that occurred in Derby on February 17, 2016.  The Derby overdose resulted in the death of a 23-year-old male.  The Shelton overdoses involved one individual who was 18 and another who was 22.

The investigation, which includes victim and witness interviews, as well as analysis of numerous text messages of the decedent’s phone, identified COMMERFORD as the heroin source of supply in all three overdose cases.  The investigation also revealed that COMMERFORD sold heroin to a 16-year-old individual who did not overdose.

The charge of distribution of heroin to an individual who is under 21 years of age carries a mandatory minimum term of imprisonment of one year, a maximum term of imprisonment of 40 years, a term of supervised release of no less than six years, and a fine of up to $2 million.

COMMERFORD is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on July 28, 2016.  He has been detained since his arrest on related state charges on February 18, 2016.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ZACHARY KRAMER, 22, of Bethesda, Maryland, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to eight months of home confinement with outpatient drug treatment, four months of imprisonment, three years of supervised release and a $10,000 fine.

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

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

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

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

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

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

Kramer and Lonergan were arrested on federal charges on May 22, 2015.

On November 12, 2015, KRAMER pleaded guilty to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”).

Lonergan pleaded guilty to the same charge on November 30, 2015.  He is scheduled to be sentenced on June 15, 2016.

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

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MAURICE EARLEY, 50, of Seymour, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 42 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm by a convicted felon.

According to court documents and statements made in court, on June 28, 2013, EARLEY was arrested by Connecticut State Police after he physically assaulted his girlfriend.  EARLEY punched the victim in the face while they were traveling on I-95 in Bridgeport, then pulled over, dragged her from the car, choked her and punched her several more times.  The victim was able to escape and was treated at the hospital for a fractured nose, a fractured collar bone and other injuries.

A subsequent search EARLEY’s residence revealed a loaded 9mm handgun with an obliterated serial number, and 93 rounds of 9mm ammunition, including hollow-point bullets.

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

“It is our priority to prosecute all defendants who are prohibited from possessing firearms,” said U.S. Attorney Daly.  “We are particularly concerned about guns in the hands of predators who commit acts of domestic violence preying on an especially vulnerable population.  This defendant not only possessed a loaded firearm with an obliterated serial number, but also 90 rounds of ammunition.  Domestic violence affects women and children across all socio-economic, cultural and racial lines.  According to a 2011 Center for Disease Control survey, one in four women experience severe physical violence by an intimate partner.  Each year, this country witnesses more than a million acts of domestic violence that result in hundreds of deaths.”

On February 19, 2015, a grand jury in Bridgeport returned an indictment charging EARLEY with one count of being a felon in possession of a firearm.  He has been detained since March 2, 2015.  On December 14, 2015, EARLEY pleaded guilty to the charge in the indictment.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut State Police and Seymour 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, announced that JOHN VESCERA, 60, of Dana Point, Calif., waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to false advertising and misusing a government seal in connection with the provision of mortgage modification services.

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

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

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

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

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

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

VESCERA pleaded guilty to one count of misuse of a government seal and one count of false advertising.  Chief Judge Hall scheduled sentencing for July 26, 2016, at which time VESCERA faces a maximum term of imprisonment of six years.

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

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

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 TAHIR FARID, 22, and RYAN LOONEY, 19, both of Hamden, have pleaded guilty to federal oxycodone distribution charges.  The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, on January 3, 2016, a 22-year-old male purchased 30 40-milligram oxycodone pills from FARID in exchange for $900.  He then consumed some of those pills, as well as other substances.  On January 5, 2016, the 22-year-old male was found unresponsive at a friend’s residence in Weston.  He remains unresponsive and, according to medical personnel, is in a “persistent vegetative state.”

The investigation revealed that, prior to the victim’s overdose, LOONEY supplied FARID with oxycodone pills.  FARID then distributed the pills to the victim.

FARID and LOONEY were arrested on federal criminal complaints on February 22 and February 29, respectively.

Today, LOONEY waived his right to indictment and pleaded guilty in Hartford federal court to one count of possession with intent to distribute, and distribution of, oxycodone.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 11, 2016.  The charge carries a maximum term of imprisonment of 20 years. 

On April 26, 2016, FARID pleaded guilty to the same charge.  He is scheduled to be sentenced by Judge Chatigny on August 8, 2016.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JONATHAN FISHER, 34, of Norwich, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of possession with the intent to distribute, and distribution of, heroin.

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

According to court documents and statements made in court, on April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence.  The emergency involved an 18-year-old male who had died from an apparent heroin overdose.  FISHER was not present at the time law enforcement had arrived.  A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp.  A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.

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

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

FISHER was charged by federal complaint on April 20 and is detained.  He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 27, 2016.  The offense carries a maximum term of imprisonment of 20 years. 

This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Norwich Police Department.  The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK ANTHONY GOULDBOURNE, 42, of Hartford, Conn. and Brooklyn, N.Y., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment for making a false statement in a passport application.

According to court documents and statements made in court, GOULDBOURNE is a native and citizen of Jamaica.  In March 2011, he submitted an application for a U.S. passport, in the name of his brother, at a U.S. Post Office in Hartford.  Claiming to be his brother, who is a U.S. citizen, GOULDBOURNE presented to the passport acceptance agent a New York birth certificate and a Pennsylvania identity card, and then signed the passport application under oath.  Passport authorities flagged the application as possibly fraudulent and did not issue the passport.

In May 2015, law enforcement determined that GOULDBOURNE was an inmate at Hartford Correctional Center under the same identity used in the fraudulent passport application. In an interview with law enforcement on May 7, 2015, GOULDBOURNE admitted that he had submitted the fraudulent passport application in March 2011, and that he had obtained the Pennsylvania identity card in his brother’s name.

On December 15, 2015, GOULDBOURNE waived indictment and pleaded guilty to one count of making a false statement in a passport application.  He will be subject to deportation proceedings upon the completion of his federal sentence.

The case was investigated by the U.S. Department of State, Diplomatic Security Service.  The case is being prosecuted by Assistant United States Attorney Hal Chen.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CYNTHIA TANNER, 54, formerly of Darien, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for embezzling approximately $800,000 from a Connecticut-based veterans services organization, and for failing to pay taxes on that income.

According to court documents and statements made in court, TANNER was employed as a bookkeeper for the National Veterans Service Fund (“NVSF”) located in Darien.  The stated mission of the NVSF was to provide case managed social services and limited medical assistance to Vietnam and Persian Gulf War veterans and their families, with a focus on families with disabled children.  From approximately January 2009 through June 2014, TANNER used nearly $800,000 in NVSF funds to pay various personal expenses for her and her family members.  She also altered records to conceal her scheme and by falsely claiming that the stolen monies were being paid to veterans in need.

In addition, TANNER failed to report $794,768.47 in embezzled income on her 2009 through 2013 federal tax returns, resulting in a tax loss of $270,026.

TANNER was ordered to pay full restitution to the NVSF, and back taxes, interest and penalties in an amount that exceeds $500,000.

TANNER was arrested on related state charges on June 2, 2014.  On December 15, 2015, she pleaded guilty to one count of wire fraud and one count of tax evasion.

TANNER, who is released on bond, was ordered to report to prison on August 30, 2016.

This investigation was conducted by the U.S. Secret Service, Internal Revenue Service – Criminal Investigation Division and Darien Police Department.  The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a 15-count indictment charging MARC ALEXANDER, 35, of Stratford and Oxford, RACHAEL ALEXANDER, also known as Rachael Vierling, 38, of Stratford and Oxford, and BERNARD HARRIS, 42, of Bridgeport, with participating in a stolen postal money order scheme.  The indictment was returned on April 19, 2016, and was unsealed after the defendants were arrested on April 26.

As alleged in the indictment, after blank postal money orders were stolen from the U.S. Post Office in Old Greenwich, MARC ALEXANDER, RACHAEL ALEXANDER and others would imprint the postal money orders with various denominations using a computer font designed to make them appear to be authentic.  MARC ALEXANDER, RACHAEL ALEXANDER, HARRIS and others then deposited the fraudulently imprinted postal money orders into numerous bank accounts, either at an ATM or at a teller window.  Members of the conspiracy then withdrew and used the funds.  At times, members of the conspiracy also used the fraudulently imprinted postal money orders to make payments to other individuals.

The loss in the case exceeds $300,000.

The indictment charges the defendants with one count of conspiracy to commit wire fraud and multiple counts of wire fraud.  Each charge carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.

MARC and RACHAEL ALEXANDER are detained and HARRIS is released on a $125,000 bond.

U.S. Attorney Daly stressed that an indictment 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 Connecticut Financial Crimes Task Force¸ U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Federal Bureau of Investigation, Westport Police Department and Greenwich Police Department.

Individuals with information about this matter are encouraged to call the Connecticut Financial Crimes Task Force (203) 782-7333.

The case is being prosecuted by Assistant U.S. Attorney Ray Miller.

Boston, MA – The U.S. Drug Enforcement Administration (DEA) is continuing its efforts to take back unused, unwanted and expired prescription medications with it 11th National Prescription Drug Take-Back Day.  On April 30, between 10 a.m. and 2 p.m., the DEA invites the public to bring their potentially dangerous, unwanted medicines to one of the hundreds of collection sites all over New England.

The public can find a nearby collection site by visiting www.dea.gov clicking on the “Got Drugs” icon, and entering the zip code into the search window, or they can call 800-882-9539. 

All across America and especially here in New England we are experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers.  6.5 million Americans abuse prescription drugs, according to the most recent National Survey on Drug Use and Health, which is more than abuse cocaine, heroin, and hallucinogens combined.  

Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms.  The removal from homes of unwanted prescription pills that can be abused, stolen or resold is an easy way to help fight the epidemic of substance abuse and addiction.

“Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse,” said DEA Special Agent in Charge Michael J. Ferguson.  “Rates of prescription drug abuse in the U.S. are at alarming levels, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs.  Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse.”

“The opioid epidemic has tragically struck in Connecticut as it has in many other parts of our country,” said Deirdre M. Daly, U.S. Attorney for the District of Connecticut.  “Hundreds of families from all over our state have lost loved ones to drug overdoses.  The numbers of deaths are increasing and far too often the abuse started with painkillers or other prescription narcotics.  Again and again, we find victims who were injured and became addicted to legally-prescribed opioids, or family members and friends who experiment with leftover pills they find in medicine cabinets.  You may be surprised by the quantity and types of drugs you have in your home.  I strongly urge you to collect all of your excess drugs and dispose of them this Saturday at one of nearly 70 locations across our state.  By doing so, you may be saving someone close to you from addiction, or much worse.”

During the last and 10th National Prescription Drug Take-Back Day, the New England Field Division over the course of four hours collected 67,107 pounds of expired, unused and unwanted prescription drugs at 596 collection sites throughout New England. 

Many local police departments across Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine and Vermont maintain drop-off receptacles so the public can dispose of unused, unneeded and expired prescription medications seven days a week throughout the year with no questions asked.

For more information contact:

Special Agent Tim Desmond
Drug Enforcement Administration
New England Field Division
617-557-2463

 

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in Hartford today found DOMINIQUE MACK, also known as “Lil Sweets,” 26, of Hartford, guilty of conspiring to commit witness tampering by murdering one individual and planning to murder a second individual.  The trial before U.S. District Judge Michael P. Shea began on April 11.

“Together with our law state and local enforcement partners, we are committed to using the full weight of federal law to prosecute those individuals most responsible for violence in our inner cities,” stated U.S. Attorney Daly.  “In an attempt to prevent his own apprehension, this defendant shot and killed Ian Francis.  He then plotted  to kill a second individual who he feared might be a witness against him.  This was a particularly difficult prosecution that was superbly investigated.  I commend the excellent work of our trial team, the FBI, the Northern Connecticut Violent Crimes Task Force, and the Hartford Police Department’s Major Crimes Division.”

According to the evidence at trial, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford.  Francis succumbed to his injuries on January 15, 2011.  At the time, MACK, who had been charged as part of a multi-defendant federal drug conspiracy, was hiding out in an attempt to evade arrest.  On June 15, 2011, law enforcement arrested MACK at an apartment on Vine Street in Hartford.  A search of the apartment revealed a Ruger 9 millimeter semi-automatic pistol, which was subsequently determined to be the firearm that was used to murder Francis.

The investigation revealed that MACK conspired with Keronn Miller and others to murder Francis to prevent Francis from providing information to law enforcement about MACK’s whereabouts.  Miller had lured Francis to the location on Sigourney Street knowing that the plan was to murder Francis when he arrived there.

On December 4, 2014, Miller, also known as “Fresh,” 25, of Hartford, pleaded guilty to aiding and abetting in the murder of Francis.  He awaits sentencing.

Shortly after Miller’s guilty plea, the government received information about a plot to kill a witness for MACK’s upcoming trial.  Tyquan Lucien, also known as “TQ” and “Frogger,” who had been arrested as part of this investigation and was incarcerated with MACK at a detention facility in Rhode Island, had told another inmate about a plan by Lucien and MACK to kill an individual who had been identified as a government witness in the case against Miller.  On February 13, 2015, an undercover officer who was posing as someone who might be able to commit the murder met with Lucien in the visiting area of the detention facility.  During the meeting, Lucien ordered the killing of the potential government witness and others, making throat-slashing motions to make his intent clear.  Three days later, Lucien met with MACK and relayed to him the facts of the visit.

The jury found MACK guilty of two counts of conspiracy to commit witness tampering by committing first degree murder, an offense that carries a mandatory lifetime term of imprisonment.  The jury also found MACK guilty of two counts of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years.

The jury found MACK not guilty of two counts of tampering with a witness.

Judge Shea scheduled sentencing for July 25, 2016.

 On August 24, 2015, Lucien pleaded guilty to conspiracy to commit witness tampering by first degree murder.  He awaits sentencing.

This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division.  The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.

New Haven – As part of an ongoing effort to make our criminal justice system fairer, more efficient and more effective at reducing recidivism and helping formerly incarcerated individuals contribute to their communities, the Department of Justice has designated the week of April 24-30, 2016, as National Reentry Week.

“The Justice Department is committed to reducing recidivism and making our communities safer,” stated U.S. Attorney Deirdre M. Daly.  “A major part of this commitment is assisting those who have served time in prison transition to being productive and law-abiding members of society.  Too often, returning citizens face impregnable barriers as they compete for jobs, seek to attain stable housing and support their families.  Successful reentry programs benefit all of us.”

National Reentry Week events are being held in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands.  U.S. Attorney’s Offices alone are sponsoring more than 200 events, and federal Bureau of Prisons facilities are holding more than 370 events.

The U.S. Attorney’s Office for the District of Connecticut is participating in four National Reentry Week events:

• On April 27, members of the U.S. Attorney’s Office, U.S. Probation Office and the Federal Public Defender’s Office are speaking to inmates at FCI Danbury about federal government reentry initiatives.
• On April 28, the City of Hartford is presenting a panel discussion titled “Life After Lockup: Stories of Success,” at the Hartford Public Library, from 5:30 p.m. to 7:00 p.m.
• On April 29, the U.S. Attorney’s Office is hosting “A Brighter Future: Jobs for Returning Citizens,” in New Haven.  Panel discussions will include returning citizens who are now employed, employers who have successfully hired individuals with criminal records, and workforce development providers who have implemented programs to prepare these individuals for employment.
• On April 29, the Bridgeport Reentry Collaborative will be hosting its 5th Annual Bridgeport Reentry Awards Ceremony at Housatonic Community College, at 6:00 p.m.  The ceremony is a celebration of the collective success of former offenders, advocates, and businesses who have demonstrated their commitment to effective reintegration.

For more information about these programs and the U.S. Attorney’s Office reentry initiative, please contact Holly A. Wasilewski, Reentry & Community Outreach Coordinator, at 203-821-3833 or holly.wasilewski@usdoj.gov.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned an indictment charging MARYANNE STEPHENS, 68, of Ireland, formerly of Rocky Hill, Conn., with bank fraud, theft of public money, and aggravated identity theft offenses stemming from a scheme to steal Social Security retirement benefits that had been deposited into her deceased mother-in-law’s bank account.

The indictment was returned on September 18, 2012, and was unsealed on April 20, 2016, when STEPHENS was arrested at John F. Kennedy International Airport in New York.  STEPHENS appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and entered a plea of not guilty to the charges.

STEPHENS’ mother-in-law died in October 1998.  The indictment alleges that from approximately March 2004 to December 2010, STEPHENS forged the signature of her mother-in-law on bank checks in order to fraudulently obtain funds held in her mother-in-law’s bank account, including Social Security retirement benefits that were deposited into the account after STEPHENS’ mother-in-law had died.

Approximately $200,000 in Social Security benefits were deposited into STEPHEN’s mother-in-law’s bank account after she died.

If convicted, STEPHENS faces a maximum term of imprisonment of 30 years for bank fraud, a maximum term of imprisonment of 10 years for theft of public money, and a mandatory, consecutive two-year term of imprisonment for aggravated identity theft.

STEPHENS has surrendered her passport and is released on a $200,000 bond.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUSTIN ASHLINE, 25, of Ellington, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 61 months of imprisonment, followed by three years of supervised release, for stealing a firearm and selling it to his heroin dealer.

According to court documents and statements made in court, in on May 23, 2014, the ATF, DEA and Hartford Police executed a federal search warrant at the Hartford residence of Roman Pantojas, who was known to be an armed heroin dealer.  During the search, officers seized approximately 700 baggies of heroin, two loaded handguns and Pantojas’s cellular telephone.

The investigation revealed that one of the seized firearms, a Ruger .357 caliber revolver, was registered to an individual in Westbrook.  In an interview with Connecticut State Police, the firearm owner stated that he had just discovered that the revolver had been stolen from his truck.  He also stated ASHLINE had been his employee.

Analysis of the cellular telephone seized from Pantojas revealed approximately 72 incoming and outgoing calls between the phone and a number that was registered to ASHLINE.

In an interview with law enforcement, ASHLINE admitted that he stole the firearm and sold it to Pantojas in exchange for approximately 20 baggies of heroin and between $70 and $100 in cash.

ASHLINE has four prior felony convictions, including one for sale of narcotics and one for first degree larceny.  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.

ASHLINE was arrested on June 19, 2014.  On January 13, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

ASHLINE was detained from the date of his arrest until June 2015 when he was released into an inpatient drug treatment program.  He was remanded to custody on October 6, 2015, after he tested positive for opiates, was terminated from his drug treatment program and his bond was revoked.

ASHLINE was transferred into state custody where he is serving an unrelated 30-month state sentence, which is scheduled to expire in July 2018.  He will serve an additional 13 months of federal imprisonment when he released from state custody.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, announced that PETER RESSLER, 68, of Woodbridge, was charged today by federal criminal complaint with embezzlement of debtor’s funds.  RESSLER was an attorney with a bankruptcy practice based in New Haven.

RESSLER appeared this afternoon before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond.

As alleged in the criminal complaint, the U.S. Bankruptcy Court for the District of Connecticut contacted the U.S. Attorney’s Office after it identified criminal conduct by RESSLER in at least two cases involving debtors that were his clients.  In one case, the debtor entrusted RESSLER with $450,000, which were proceeds of a legal settlement, to be held by RESSLER’s firm for the benefit of the debtor and its creditors.  In a second case, the debtor entrusted RESSLER’s firm with approximately $321,409.  In both cases, most of the deposited funds were used by RESSLER for other purposes than on behalf of the relevant clients.            

The complaint further alleges that RESSLER is cooperating with the investigation and prosecution of this matter, which includes the investigation of embezzlements from other clients.

RESSLER resigned from the Connecticut bar in March 2016.

The charge of embezzlement of debtor’s funds carries a maximum term of imprisonment of five years.

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

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

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 six men were arrested this week on various federal heroin charges.  The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to a criminal complaint charging JONATHAN FISHER, 35, of Norwich, on April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence.  The emergency involved an 18-year-old male who had died from an apparent heroin overdose.  FISHER was not present at the time law enforcement had arrived.  A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp.  A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.

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

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

FISHER was charged by federal complaint on April 20 and is detained.

According to a criminal complaint charging JORGE MORALES, also known as “Capone,” 29, of Shelton, on April 15, 2016, a 21-year-old female was found unresponsive at her Bridgeport residence and was transported to the hospital. The victim has since been removed from life support and died.

Bridgeport Police recovered two baggies of suspected heroin packaged in glassine baggies from the bed next to where the victim was located.  The baggies were marked with a particular brand stamp.  A cellular telephone seized from the victim revealed numerous calls and text messages between the victim and MORALES in the days leading up the victim’s overdose.  In addition, on April 15, 2016, law enforcement conducted a controlled purchase of heroin, marked with the same brand stamp, from MORALES.

MORALES was charged by federal complaint on April 20 and is detained.

According to a criminal complaint charging TIMOTHY PAPROCKI, 33, of Ledyard and RUDY HERNANDEZ, 43, of New London, on April 12, 2016, Groton Town Police responded to a report of a medical emergency involving a 25-year-old male.  The victim, who had used heroin and/or fentanyl, was transported to the hospital where he was pronounced deceased.  The investigation, which has included witness interviews and the review of cellphone records and text messages, revealed that the victim arranged to purchase heroin from PAPROCKI.  PAPROCKI then purchased heroin from HERNANDEZ and distributed it to the victim.

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

PAPROCKI and HERNANDEZ were charged by federal complaint on April 20 and are detained.

According to a criminal complaint charging DANIEL GAMERO, 23, of Hartford, and CHARLIE TACURI, 19, of Hartford, since February 2016, Hartford Police have been investigating the distribution of heroin marked with a particular brand stamp.  During the course of the investigation, there have been at least two overdose deaths to which heroin marked with the stamp has been linked, one in Vernon on February 1 and one in Granby on March 22.  Between February and April 2016, law enforcement conducted four controlled purchases of heroin mark with the same stamp from GAMERO and TACURI.

GAMERO and TACURI were arrested on April 21.  On that date, a search of GAMERO’s Preston Street residence revealed hundreds of bags of heroin, marijuana and a firearm.  GAMERO and TACURI are detained.

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.

These investigations are being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, Bridgeport High Intensity Drug Trafficking Area Task Force (“HIDTA Task Force”) and Hartford Task Force; the Statewide Narcotics Task Force, the Regional Community Enhancement Task Force, the U.S. Marshals Service and the Norwich, Bridgeport, Monroe, Groton Town, New London and Hartford Police Departments.  The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.  The HIDTA Task Force includes participants from the Connecticut State Police and the Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments.  The Hartford Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments. 

These cases are being prosecuted by Assistant U.S. Attorneys Robert Spector, Avi Perry, Douglas Morabito and Gordon Hall.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY RODRIGUEZ, 29, of Bridgeport, was sentenced yesterday 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 firearms.

This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking.  In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations. 

According to court documents and statements made in court, in May 2014, RODRIGUEZ was serving a three-year term of probation stemming from his 2013 felony conviction for third degree larceny.  On May 20, 2014, Connecticut Adult Probation, with the assistance of Bridgeport Police and ATF, visited RODRIGUEZ’s residence and found several assorted rounds of ammunition. In addition, officers found a gun box containing only a receipt for a Smith and Wesson .40 caliber pistol that had been purchased by William Ramos on January 13, 2014 at a gun store in Orange.  Officers also found a second empty gun box for a Springfield Armory XD40 pistol.

Also in May 2014, ATF and the New Haven Police Department seized six handguns from a convicted felon who identified William Ramos as his source for firearms. According the convicted felon, in 2013 and 2014, he had received seven different firearms from Ramos, some of which he had already sold to other individuals.

The investigation revealed that, between 2011 and 2014, Ramos had purchased a total of 29 handguns.  RODRIGUEZ has admitted that he purchased seven firearms from Ramos, many of which he sold to others.

On November 7, 2014, RODRIGUEZ pleaded guilty to one count of possession of a firearm by a previously convicted felon.

Ramos has pleaded guilty and awaits sentencing.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned a superseding indictment charging BRADFORD BARNEYS, 50, of Odenton, Maryland, with conspiring with TIMOTHY W. BURKE in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut.  BARNEYS is an attorney licensed to practice in Connecticut and has an office in Bridgeport.

The 12-count superseding indictment, which was returned on March 30, 2016, was unsealed today. 

BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 64, of Easton, was originally charged by indictment on February 10, 2016, with mail fraud, wire fraud, tax evasion, money laundering and identity theft offenses.  The superseding indictment charges him with additional mail fraud and money laundering counts.

According to the indictment, since at least April 2011 and continuing to at least September 2014, BURKE and BARNEYS conspired to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages.  The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE and BARNEYS presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership.  BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure.  After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property.  BARNEYS, acting as BURKE’s attorney, met or spoke with homeowners to reassure them about their sale to BURKE.

The indictment further alleges that BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit.  When tenants failed to pay rent, BARNEYS would evict them so that BURKE could obtain another tenant for the property.

BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowners’ mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners.  Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender. 

It is alleged that BURKE undertook extensive efforts to disguise his true identity from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds.  BURKE is associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; The Complete Handyman, LLC; and Woodbridge Associates.  He is also alleged to have used the name of another individual in connection with his fraud without that person’s knowledge or consent.

The indictment also alleges that BURKE evaded paying more than $1 million in federal taxes.

The indictment further alleges that in approximately 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming.  BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to prison.  BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time.  One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry.

The indictment charges BURKE with one count of conspiracy, five counts of mail fraud, one count of wire fraud, one count of aggravated identity theft, one count of tax evasion, and three counts of money laundering.  If convicted, BURKE faces a maximum term of imprisonment of 20 years on each count of conspiracy, mail fraud, wire fraud, and money laundering; a maximum term of imprisonment of five years for tax evasion, and a mandatory, consecutive two-year term of imprisonment for aggravated identity theft.

The indictment charges BARNEYS with one count of conspiracy and one count of mail fraud, each of which carries a maximum term of 20 years in prison.

BARNEYS and BURKE appeared today before U.S. Magistrate Judge Donna F. Martinez and entered pleas of not guilty to the charges.

BURKE has been detained since November 19, 2015, when he was arrested on a criminal complaint.  BARNEYS is released on a $50,000 bond.

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

This matter is being investigated by Internal Revenue Service – Criminal Investigation Division, the U.S. Department of Housing and Urban Development – Office of Inspector General, and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case is being prosecuted by Assistant U.S. Attorney David T. Huang.

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

Individuals who believe they have been victimized by this alleged scheme and citizens with information that will be helpful to this ongoing investigation are encouraged to call 860-240-9735.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that Daofu Zhang, 40, of Shenzen, China, pleaded guilty today in New Haven federal court to conspiring to sell counterfeits of sophisticated integrated circuits to a purchaser in the United States.

According to court documents and statements made in court, Zhang and his two co-conspirators each operated businesses in China that bought and sold electronic components, including integrated circuits (“ICs”).  In the summer of 2015, Zhang’s co-conspirator, Xianfeng Zuo asked the other co-conspirator, Jiang Yan, to locate and purchase several advanced ICs made by Xilinx Corp., which had military applications, including radiation tolerance for uses in space.  Yan then asked a U.S. individual to locate the Xilinx ICs and sell them to Yan.  The U.S. individual explained that the ICs cannot be shipped outside the U.S. without an export license, but Yan still wished to make the purchase.  When the U.S. individual expressed concern that the desired ICs would have to be stolen from military inventory, Yan proposed to supply the U.S. source with “fake” ICs that “look the same,” to replace the ones to be stolen from the military. In November 2015, Zhang shipped from China to the U.S. individual, two packages containing a total of eight counterfeit ICs, each bearing a counterfeit Xilinx brand label.  After further discussions between Yan and the U.S. individual, Yan, Zhang, and Zuo flew together from China to the U.S. in early December 2015 to complete the Xilinx ICs purchase.  On December 10, 2015, the three conspirators drove to a location near Route 95 in Milford, Connecticut, where they planned to meet the U.S. individual, make payment, and take custody of the Xilinx ICs.  Federal agents arrested all three at the meeting location. Zhang pleaded guilty to one count of conspiracy to traffic in counterfeit goods.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on July 8, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $2 million fine. On March 7, 2016, Yan, 33, pleaded guilty to one count of conspiracy to traffic in counterfeit goods, and one count of attempt to export integrated circuits without the required export license.  On March 16, 2016, Zuo, 38, pleaded guilty to one count of conspiracy to traffic in counterfeit goods.  They await sentencing. This matter is being investigated by the Defense Criminal Investigative Service, the Department of Homeland Security, the Department of Commerce, the Federal Bureau of Investigation, and the Air Force Office of Special Investigations.  The case is being prosecuted by Assistant U.S. Attorney Henry Kopel and U.S. Department of Justice Counterintelligence and Export Control Section Trial Attorney Casey Arrowood.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DAVID ADAMS, 55, of Old Saybrook, was arrested today on a federal criminal complaint that charges him with one count of filing a false tax return.  

ADAMS appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was released on a $500,000 bond secured by real property.

The complaint alleges that, on June 7, 2011, ADAMS sold his partnership interest in an online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale.  Although ADAMS told his accountant that he sold his partnership interest in 2011, ADAMS did not tell his accountant that he received $4,708,419.20.  Accordingly, ADAMS’s 2011 tax return did not include the $4,708,419.20 in income ADAMS received as a result of the sale and instead showed ADAMS’ total income and tax liability for 2011 as substantially less than what should have been reported.  The 2011 tax return also reflected that ADAMS had paid $220,000 in estimated tax payments during the year when, in fact, he paid only $100,000 in estimated tax payments for 2011.

The complaint alleges that ADAMS also made false statements on his tax returns for years 2002, 2009 and 2012.  For example, on his 2012 tax return, ADAMS failed to report more than $1.3 million in cash he received into his personal bank account in that year.  The complaint further alleges that ADAMS has an extensive history with IRS collections.

According to statements made in court, it is alleged that ADAMS owes approximately $4.7 million in back taxes, interest and penalties.

The charge of filing a false tax return carries a maximum term of imprisonment of three 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 Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.

United States Attorney Deirdre M. Daly, Deputy Chief State’s Attorney Leonard C. Boyle and Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration today announced a statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

Beginning in January 2016, the DEA’s New Haven Tactical Diversion Squad, state and local police, and a team of prosecutors from the U.S. Attorney’s Office, have investigated approximately 20 heroin and opioid overdoses that have occurred in Connecticut.  Most of the overdoses have resulted in death.  Currently, there are ongoing investigations of overdoses that occurred in Danbury, Derby, Enfield, Greenwich, Middletown, Newtown, New Haven, Norwalk, Norwich, Shelton, Stamford, Vernon, Weston, Willimantic and Woodbridge.

As part of this initiative, the U.S. Attorney’s Office and DEA have developed a protocol for police that respond to heroin and opioid overdose deaths.  The protocol calls for local law enforcement to perform time-sensitive investigative techniques and preserve all evidence at the scene of an overdose death.  Police also are asked to contact DEA at the early stages of an investigation, and ensure that an autopsy of the decedent is performed.  The DEA and local police will then jointly investigate to determine the events leading up to the death, the source of the drug involved, and the composition of the drug.  Individuals responsible for distributing drugs causing overdose deaths will be prosecuted.

“We are combatting a tragic opioid epidemic that is plaguing Connecticut and much of the country,” said U.S. Attorney Daly.  “Deaths caused by heroin or prescription opioids have devastated hundreds of families from every corner of our state.  This statewide initiative will enable law enforcement to quickly determine if a highly toxic drug is on the street and take steps to identify the source of the drug in order to keep it out of the hands of vulnerable users.  The police protocol will allow investigators to preserve evidence critical to identifying and convicting those responsible for distributing these drugs.  Our aim is to prevent additional deaths and to hold accountable those who distribute these deadly drugs.  We thank the DEA for their invaluable leadership in this initiative and appreciate the significant support provided by Connecticut’s local police departments, the Connecticut State Police and the State’s Attorneys.”

“We hope that the use of this protocol will enable law enforcement to effectively track the source of the most dangerous brands of heroin being distributed in Connecticut,” said Deputy Chief State’s Attorney Boyle.

“While those suffering from the disease of heroin addiction need access to treatment and recovery, those responsible for distributing these lethal drugs need to be held responsible for their actions,” said DEA Special Agent in Charge Michael J. Ferguson.  “DEA and its federal, state and local partners are committed to bringing to justice those that distribute this poison.”

To date, this initiative has resulted in federal charges against

• Reginald Miles, Jr., 25, of Waterbury, Wade Pettingill, 23, of Middlebury, and Kevin Foster, 23, of Middlebury, in connection with the heroin overdose death of a 22-year-old man in Woodbridge on November 19, 2015;
   
• Tahir Farid, 21, and Ryan Looney, 19, both of Hamden, in connection with the oxycodone overdose of a 22-year-old man in Weston on January 5, 2016;
   
• Bradley Commerford, 20, of Derby, in connection with the heroin overdose death of a 23-year-old man in Derby on February 17, 2016, and two non-fatal heroin overdoses of an 18-year-old man and a 22-year-old man in Shelton on February 16, 2016;
   
• Ryan Budd, 25, of Bethel, in connection with a non-fatal heroin overdose of a 25-year-old female in Danbury on March 1, 2016.

As part of this statewide initiative, on April 8, 2016, the DEA and U.S. Attorney’s Office received funding from two sources for heroin and opioid overdose investigations. First, the DEA received Department of Justice Organized Crime Drug Enforcement Task Force (OCDETF) funding in an investigation focused on large-scale sources of heroin being distributed in Connecticut.  Second, in support of the statewide heroin initiative, the DEA received funding under the National Heroin Strategic Initiative.  This funding is being used to pay overtime, purchase equipment, fund training, and assist in the investigation of seized cellular telephones.    

U.S. Attorney Daly noted that the U.S. Attorney’s Office also continues to work with the DEA, FBI, HSI and other federal, state and local law enforcement to target high volume heroin and oxycodone trafficking organizations.  On March 2, 2016, a federal grand jury in Hartford returned an indictment charging a Hartford grocery store owner and two associates with trafficking heroin.  During the investigation, investigators seized more than 20 kilograms of heroin destined for Connecticut and approximately $900,000 in cash.

In another ongoing investigation, 11 New Haven-area residents were recently charged with conspiring to steal the personal identification information of over 50 doctors and medical professionals in order to create fraudulent prescriptions to obtain and distribute more than 100,000 oxycodone pills.

In addition, the U.S. Attorney’s Office continues to prioritize the prosecution of medical professionals who prescribe prescription narcotics outside the scope of accepted medical practice. On November 4, 2015, John Katsetos, a doctor who practiced medicine for more than 20 years in Stamford and Milford was sentenced to 84 months in prison. The investigation revealed that from November 2011 to October 2013, Dr. Katsetos authorized more than two million dosage units of Schedule II through IV controlled substances to more than 2000 patients. His conduct created opioid addictions in dozens of patients, led to the overdose death of a New York woman, and supplied individuals with a vast quantity of prescription pills that they illegally distributed to others.

“While policy makers and mental health officials, with our full support, work to address issues aimed at lessening the demand for illegal opioids, we in law enforcement will continue to marshal resources to address the supply side of the equation,” said U.S. Attorney Daly. “We will tirelessly investigate and disrupt the activities of heroin traffickers and prescription pill distributors who put profit above public health and safety.”

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER DUNCAN, also known as “Woozer,” 31, of Hamden, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by five years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, on November 20, 2014, law enforcement officers made a controlled purchase of PCP from DUNCAN in New Haven.  After the purchase, investigators followed the car DUNCAN was driving to a store on Kimberly Avenue in New Haven and observed DUNCAN entering the store.  Investigators then entered the store and placed DUNCAN under arrest.  A subsequent court-authorized search of DUNCAN’s vehicle revealed a Ruger nine millimeter handgun with a large capacity clip, which was located on the floor in front of the driver’s seat.

DUNCAN was originally arrested on state drug and firearm offenses.  On January 29, 2015, he was charged federally and has been detained since that time.  On January 13, 2016, he pleaded guilty to one count of carrying of a firearm in furtherance of a drug trafficking crime.

This matter was investigated by Federal Bureau of Investigation, the New Haven Police Department and the Milford Police Department.  The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EARL O’GARRO, JR., 33, formerly of Marlborough, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 78 months of imprisonment, followed by three years of supervised release, for defrauding a specialty lender, insurance carriers and the State of Connecticut.

On December 14, 2015, a jury found O’GARRO guilty of two counts of wire fraud and one count of mail fraud.

According to the evidence at trial, O’GARRO was the President, Chief Executive Officer and an owner of Hartford-based Hybrid Insurance Agency, LLC (“Hybrid”), a wholesale insurance brokerage specializing in placing excess and surplus line insurance products. 

Beginning in approximately April 2013, O’GARRO defrauded Capital Premium Financing, Inc., a specialty lender that provides premium financing on behalf of insured entities. O’GARRO falsely represented to Capital Premium Financing that an insurance carrier, AmTrust E&S Insurance Services, Inc. (“AmTrust”), had issued insurance policies for four companies, that these companies were using Capital Premium Financing’s services to finance their premium payments, and that Hybrid had brokered the contracts and was entitled to collect the premiums on behalf of AmTrust.  In fact, O’GARRO knew that AmTrust had not issued policies for any of these four companies.  Relying on O’GARRO’s misrepresentations, Capital Premium Financing subsequently released $849,282.55 in premium payments to Hybrid on the purported insurance policies.  O’GARRO converted the funds to his own use.

In July 2013, as part of an effort to prolong the scheme, O’GARRO created an email address and Internet domain name similar to that of AmTrust in order to assume a false identity as an AmTrust underwriter.  Posing as an AmTrust underwriter, O’GARRO sent an email to Capital Premium Financing to falsely verify the existence of the four policies.

Hybrid also served as the wholesale broker for certain insurance policies held by the City of Hartford.  In July 2013, O’GARRO directed the city to transfer $868,244 in premiums to Hybrid.  After the City of Hartford wired Hybrid the funds, O’GARRO intentionally withheld $669,997 in premium payments from the appropriate excess insurance carries, Starr Indemnity & Liability Company, Inc. and National Casualty Company. Instead, O’GARRO converted the money to his own use.  In fact, approximately 17 minutes after receiving the funds, O’GARRO wired $300,000 to Capitol Premium Financing as partial repayment for the monies he had been caught stealing from them.  O’GARRO then falsely advised the city that the premium payments had been remitted to the insurers.

The evidence at trial also established that, in approximately July 2013, O’GARRO, on behalf of Hybrid, submitted a false application to the State of Connecticut Department of Economic and Community Development (“DECD”) for a $500,000 loan.  In his application, O’GARRO provided false information concerning his and Hybrid’s financial condition.  Based in part on these false statements, DECD approved Hybrid’s loan application and mailed a $250,000 check to Hybrid.  O’GARRO used a substantial portion of these loan funds to make a payment on a million dollar condominium he had purchased in the Dominican Republic and to pay tuition at his children’s private school.

Through this scheme, O’GARRO stole more than $2.1 million from his victims and used the stolen funds on personal expenses and to prop up his failing business.

Judge Thompson ordered O’GARRO to pay restitution in the amount of $1,307,326.09, which reflects a partial repayment that O’GARRO made to one of his victims.

O’GARRO has been released on a $500,000 bond since his arrest on November 21, 2014. He was ordered to report to prison on May 13, 2016.

This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Avi M. Perry and Michael J. Gustafson.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned an 18-count indictment yesterday charging JOSEPH A. CASTELLANO, 58, of Wallingford, with fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of more than $1.5 million.

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

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

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

Through this scheme, it is alleged that CASTELLANO defrauded more than 10 victim-investors of more than $1.5 million.

CASTELLANO was arrested yesterday and detained.  He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $250,000 bond.

The indictment charges CASTELLANO with 10 counts of wire fraud, one count of mail fraud and four counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count.  The indictment also charges CASTELLANO with three counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count.

U.S. Attorney Daly stressed that an indictment is not evidence of guilt.  Charges are only allegations, and 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. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAJOUN JULIOUS, also known as “Snuggles,” 23, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 87 months of imprisonment, followed by three years of supervised release, for         .

According to court documents and statements made in court, in the early morning hours of September 1, 2015, an investigation of an armed robbery of three male victims in the vicinity of 824 Elm Street led New Haven Police to JULIOUS, who was sitting in a parked car on Morse Street.  After JULIOUS was ordered out of the car and frisked for weapons, officers searched the car and found a loaded Smith and Wesson .38 Special and a loaded Davis Industries model P380, .380 caliber semi-automatic pistol.  Officers also found three iPhones underneath the car and two iPhones in nearby bushes.  One of the iPhones was identified as stolen during the armed robbery.  In an interview, JULIOUS admitted that the .380 caliber pistol was his.

JULIOUS, a member of the Reade Street, or “R2,” group, has a violent criminal history that includes felony convictions for first degree assault, intimidating a witness, and carrying a dangerous weapon.  In 2009, JULIOUS shot a victim twice at close range.  In 2010, JULIOUS was found with a firearm shortly after a group of males shot a victim who was riding his bike. 

JULIOUS has been detained since September 1, 2015.  On December 3, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

This 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. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that KAYLA WALTERS, 24, of New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by six years of supervised release, for conspiring to commit sex trafficking of minors.

According to court documents and statements made in court, in September 2012, Edward Thomas, also known as “Fire,” a New York-based pimp, answered an internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon.  Thomas, with the assistance of WALTERS, recruited and enticed MV1 to travel to New York to work for Thomas.  MV1 agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by Thomas.  Thomas discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.

After MV1 and MV2 arrived in New York, Thomas drove the two minor girls to a hotel in Milford, Connecticut, where they met WALTERS and posted prostitution advertisements.  In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of Thomas and WALTERS.  MV2 escaped from a hotel room window after several hours, but MV1 continued to work for Thomas and WALTERS for about a month, turning over all of the money she earned in prostitution to Thomas and WALTERS.  When MV1 attempted to leave, Thomas forcibly restrained her.  Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012.  Law enforcement seized nearly $4,000 in cash from Thomas during this recover, along with several computers and cellular phones.

Thomas recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast.  After Thomas sent WALTERS and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.

Thomas and WALTERS have been detained since their arrests on February 28, 2014.

On November 10, 2014, WALTERS pleaded guilty to one count of conspiracy to commit sex trafficking of a minor.

On January 26, 2015, a jury found Thomas guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor.  On November 2, 2015, he was sentenced to 210 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The Stratford and Milford Police Departments assisted the investigation.

The case was prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging DAMIEN BRYANT, 41, of Ledyard, with one count of possession with intent to distribute cocaine base (“crack”) and cocaine.  The indictment was returned on March 29, 2016.

According to allegations contained in a previously-filed criminal complaint, in February 2016, the Stonington Police Department received information that BRYANT was distributing crack cocaine.  On March 9, 2016, members of the Regional Community Enhancement Task Force and the Ledyard Police Department executed  a state search and seizure warrant at BRYANT’s residence and seized crack cocaine, cocaine, marijuana, narcotics paraphernalia and more than $14,000 in cash.  BRYANT was arrested at that time.

On March 5, 2010, BRYANT was sentenced in Bridgeport federal court to 42 months of imprisonment for distributing crack cocaine and violating the conditions of his supervised release from a prior federal conviction in the District of Rhode Island.  He is currently serving a 10-year-term of federal supervised release.

BRYANT appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered pleas of not guilty to the charge in the indictment, and to violating the conditions of his supervised release.

If convicted, BROWN faces a maximum term of imprisonment of 20 years for the narcotics offense, and an additional term of imprisonment of up to 80 months for violating his supervised release.

BRYANT has been detained since his arrest.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Regional Community Enhancement Task Force, and the Ledyard, Stonington and Groton Town Police Departments.  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 YOANNI SUAREZ, also known as “Cuba,” 39, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by four years of supervised release, for trafficking heroin.

 According to court documents and statements made in court, in August 2015, the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force received information that SUAREZ was selling large quantities of raw heroin in Hartford.  SUAREZ was arrested on September 17, 2015, after investigators coordinated a controlled purchase of heroin from SUAREZ.  SUAREZ possessed 278 grams of heroin at the time of his arrest.  A subsequent search of his Stafford Street residence revealed an additional 986 grams of heroin.

The quantity of heroin possessed by SUAREZ would create approximately 50,000 individual bags when broken down for street sale.  SUAREZ admitted to law enforcement that he obtained heroin at a price of approximately $60,000 per kilogram, which he received from his supplier on credit.

SUAREZ has been detained since his arrest.  On January 7, 2016, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN KOCH, 49, of Coventry, pleaded guilty today before U.S. District Judge Robert N. Chatigny in Hartford to one count of conspiracy to distribute anabolic steroids.

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

In pleading guilty, KOCH admitted that he conspired with Santucci and others to distribute anabolic steroids. 

During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and several firearms.

KOCH was arrested on June 4, 2015.

Judge Chatigny scheduled sentencing for July 1, 2016, at which time KOCH faces a maximum term of imprisonment of 10 years and a fine of up to $500,000.  KOCH is released on a $100,000 bond.

On December 9, 2015, Santucci pleaded guilty steroid distribution and money laundering offenses.  He awaits sentencing.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JOSEPH McANDREW, 74, of Pawcatuck, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from his misuse of client funds.

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

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

Wire fraud carries a maximum term of imprisonment of 20 years.  A sentencing date has not been scheduled.

McANDREW is released on a $25,000 bond.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Christopher W. Schmeisser.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WAYNE ALEXANDER, also known as “Uncle Easy,” 50, of Stamford, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute and distribution of cocaine base (“crack cocaine”).

According to court documents and statements made in court, between February 2015 and April 2015, law enforcement conducted three controlled purchases of crack cocaine, totaling approximately 130 grams, from ALEXANDER.

ALEXANDER was arrested on a federal criminal complaint on May 11, 2015.  He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 30, 2016, at which time he faces a maximum term of imprisonment of 20 years.

This matter has been investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force Drug Enforcement Administration, Bridgeport Police Department and Stamford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CURTIS GIBBS, 32, of New Haven, was sentenced yesterday by Senior U.S. District Judge Alfred V. Covello in Hartford to 41 months of imprisonment, followed by three years of supervised release, for illegally possessing a sawed-off shotgun.

According to court documents and statements made in court, in January 2014, the ATF and New Haven Police Department received information that GIBBS was in possession of a sawed-off shotgun and a .380 caliber pistol and was looking to sell the firearms for $350.  In a meeting with an individual who expressed interest in purchasing the firearms, GIBBS noted that the purchaser be careful because the shotgun “had a body attached to it.”

On February 3, 2014, the purchaser and GIBBS completed the transaction for the sawed-off shotgun and pistol.  The pistol that was sold at that time turned out to be a starter’s pistol.

GIBBS has several prior felony convictions, including convictions for weapon in a motor vehicle and assault.

GIBBS has been detained since his arrest on April 23, 2014.  On April 7, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department.  The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESSE WRUBEL, 29, of West Haven, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 60 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.

This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance.  On June 4, 2013, WRUBEL and Matthew Voloshin were arrested on state charges.  Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at Voloshin’s East Haven residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by Voloshin.  Three of the five firearms were stolen.  Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from WRUBEL.

On January 30, 2014, a grand jury returned an indictment charging WRUBEL and Voloshin with marijuana and firearm offenses.  WRUBEL has been detained since his arrest on February 7, 2014.  On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.

Voloshin also has been detained since his arrest on February 7, 2014.  On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.  On March 30, 2016, he was sentenced to 66 months of imprisonment. 

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments.  The case was prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARCUS FOX, 41, of Waterbury, pleaded guilty today in Hartford federal court to preparing and filing hundreds of false tax returns.

According to court documents and statements made in court, FOX prepared tax returns for individuals in his community, many of whom were associated with a church he attended.  From approximately 2009 through 2012, FOX prepared and filed more than 900 tax returns with the U.S. Internal Revenue Service on behalf of clients.  A number of tax returns that FOX prepared contained false information, including false childcare credits, education credits, American opportunity credits, itemized deductions, education expenses, charitable contributions, unreimbursed employee business expenses, hobby expenses, and childcare costs. The false returns resulted in clients receiving substantial refunds to which they were not entitled. FOX typically received payment of between $200 and $350 for his tax preparation services. 

In addition, beginning in approximately 2011, FOX falsified a number of returns in a manner that allowed FOX to secure a greater payout for himself without his clients' knowledge.  FOX would prepare a client tax return with significant falsified credits or expense deductions, which resulted in a fraudulent claim for a substantial refund.  The tax return would be e-filed with the IRS with instructions to split payment of the large refund between the client and FOX, with FOX receiving a substantial portion of the payment.  FOX would also prepare a second tax return, which he never filed, but instead provided to his client to hide the ongoing scheme. 

The government suffered a tax loss of more than $2.2 million as a result of this scheme.

FOX pleaded guilty to two counts of aiding and assisting the filing of a false tax return.  He is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on June 23 2016, at which time he faces a maximum term of imprisonment of six years.  He also has agreed that he owes restitution in the amount of $2,276,837.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS DYBER, 30, of Rocky Hill, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by five years of supervised release, for trafficking oxycodone.  DYBER also was ordered to pay a $40,000 fine.

According to court documents and statements made in court, in 2012, the Drug Enforcement Administration’s New Haven Task Force began investigating an oxycodone trafficking operation headed by DYBER, who formerly resided in West Hartford.  The investigation, which included the use of court-authorized wiretaps, controlled purchases of oxycodone, physical surveillance and the use of an undercover officer, revealed that DYBER was being supplied with bulk quantities of oxycodone by Harland Fields of the Bronx, N.Y., and Eduardo Garcia of Modesto, Calif.  At times, DYBER paid Brian Vanderpool, of West Hartford, to travel to New York to pick up oxycodone from Fields and transport the pills to DYBER in Connecticut.  DYBER distributed the pills he received from Fields and Garcia to customers and other Hartford-area distributors.

DYBER was arrested on October 11, 2013.  On February 20, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 10,000 oxycodone pills

Fields, Garcia and Vanderpool also pleaded guilty.  On August 21, 2014, Garcia was sentenced to 60 months of imprisonment.  On October 27, 2014, Fields was sentenced to 66 months of imprisonment.  On November 4, 2014, Vanderpool was sentenced to four months in a halfway house and four years of supervised release.

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments.  The case was prosecuted by Assistant U.S. Attorney Patrick Caruso.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW VOLOSHIN, 30, of East Haven was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 66 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.

This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance.  On June 4, 2013, VOLOSHIN and Jesse Wrubel were arrested on state charges.  Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at VOLOSHIN’s residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by VOLOSHIN.  Three of the five firearms were stolen.  Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from Wrubel.

On January 30, 2014, a grand jury returned an indictment charging VOLOSHIN and Wrubel with marijuana and firearm offenses.  VOLOSHIN has been detained since his arrest on February 7, 2014.  On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. 

Wrubel, of West Haven, also has been detained since his arrest on February 7, 2014.  On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.  He is scheduled to be sentenced tomorrow at 1:00 p.m.

This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments.  The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.

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 DENNIS W. HAMILTON, 45, of Norwalk, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of securities fraud.

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

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

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

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

HAMILTON was arrested on a criminal complaint on February 5, 2016.  He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on June 10, 2016, at which time he faces a maximum term of imprisonment of 20 years and a fine of up to $5 million.  He is released on bond pending sentencing.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN B. JEFFREY, also known as TUCKER JEFFREY, 48, formerly of New Canaan, Conn., and currently a resident of Denver, Colo., waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from a scheme to defraud investors of more than $1.3 million.

According to court documents and statements made in court, JEFFREY offered individuals the opportunity to invest in Anchor Shipping and Trading, and Southern Cross Shipping, representing to victims that the companies were organized in the Marshall Islands, were engaged in the cargo shipping business, and had long-term contracts that would support a profitable international shipping business. Instead of using invested funds as he had promised, JEFFREY used the vast majority of the money for his personal expenses, including paying for the mortgage on his New Canaan home, tuition at private schools, country club dues, and home renovation and landscaping costs.

As part of the scheme, JEFFREY created bogus documents that represented that certain well-known executives in the international shipping business were involved with the companies when, in fact, those executives had no such involvement.  He also e-mailed and telephoned his victims falsely representing that the companies were profitable, that the victims would soon be receiving distributions from their investments, and to reassure victims when payments were delayed.

JEFFREY faces a maximum term of imprisonment of 20 years and a fine of up to approximately $2.6 million.  A sentencing date is not scheduled.

This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan L. Wines.