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, pleaded guilty today in Hartford federal court to violating federal firearms laws.

“It is critically important for those who are responsible for manufacturing firearms, especially high-powered semiautomatic rifles, to diligently comply with federal firearms laws throughout the production and distribution process,” said U.S. Attorney Daly.  “Stag’s misconduct has resulted in hundreds of these weapons being lost or untraceable.  In addition, Stag’s possession of dozens of unregistered machine guns is particularly egregious.  Federal firearms laws exist to ensure that all legal firearms are properly accounted for and don’t wind up on the street, and in the hands of those who shouldn’t possess them.  Gun manufacturers who don’t follow the rules and violate federal law not only face license revocation, but criminal prosecution.  I commend the ATF for expertly investigating this matter.”

“What occurred in this case is absolutely unacceptable and will not be tolerated,” said ATF Special Agent in Charge Kumor.  “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.  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.  Today’s guilty plea and the license revocations demonstrate our commitment to hold firearms licensees accountable when they place public safety at risk.”

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.  ATF has postponed the effective date of the revocation for 60 days.

STAG, through its representative and president MARK MALKOWSKI, pleaded guilty to a felony charge of possession of a machine gun not registered to the company.  As part of its guilty plea, STAG has agreed to pay a $500,000 fine.  In addition, MALKOWSKI is expected to appear tomorrow in New Haven federal court and plead guilty in his individual capacity to a misdemeanor charge of failure to maintain proper firearm records, an offense that carries a maximum term of imprisonment of one year.  As part of his guilty plea, MALKOWSKI has agreed to pay a fine of $100,000.

STAG also has agreed not to challenge the license revocations in court, and to drop all ownership claims to the firearms seized by ATF.  In addition, MALKOWSKI will divest himself of his interest in STAG and to thereafter never again 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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ADAM SIEGEL, 37, of Riverside, Connecticut, waived his right to indictment and pleaded guilty today in Hartford federal court to participating in a multimillion securities fraud scheme.  SIEGEL also entered into an agreement to cooperate in the government’s ongoing investigation

According to court documents and statements made in court, between July 2008 and approximately 2014, SIEGEL was the Co-Head of U.S. Asset-Backed Securities, Mortgage-Backed Securities and Commercial Mortgage-Backed Securities Trading at RBS Securities Inc.  RBS is a global securities firm with headquarters in Stamford, Connecticut.  RBS also has a trading floor in Stamford where SIEGEL and some of the RBS employees that he supervised traded fixed income investment securities such as residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs).  In pleading guilty, SIEGEL admitted that he and others conspired to increase RBS’s profits on CLO and RMBS bond trades at the expense of customers.  As part of the scheme, SIEGEL and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and selling customers to accept deflated prices for bonds, all to benefit RBS.

The conspiracy was perpetrated in two ways.  In certain transactions, SIEGEL and his co-conspirators misrepresented the seller’s asking price to the buyer (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS.  In other transactions, SIEGEL and his co-conspirators misrepresented to the buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller, which allowed RBS to charge the buyer an extra, unearned commission.

The investigation revealed numerous fraudulent transactions by SIEGEL and other members of the conspiracy that cost at least 35 victim customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program, millions of dollars.

“Current regulations governing many fixed income products allow broker-dealers to operate in secrecy,” said U.S. Attorney Deirdre M. Daly.  “But as the Court of Appeals for the Second Circuit recently reminded us in United States v. Litvak, under the securities laws, broker-dealers do not have a license to lie to their customers.  Today’s plea is the most recent step in our continuing investigation into those who prey on fixed income investors.  Others with relevant information should follow Mr. Siegel’s example and cooperate with us.  We thank SIGTARP and the FBI for their hard work to date on this investigation.  We are committed to our various investigations into the fixed income markets, and will continue to work with SIGTARP and the FBI, as well as our partners at the Department of Labor Office of the Inspector General, the Federal Housing Finance Administration Office of Inspector General, and the Fraud Section of the Department of Justice.”

“The opaque markets of residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLO), which played such a large role in the financial crisis, require honesty and integrity to protect all who trade,” said SIGTARP Inspector General Romero.  “During the financial crisis, Adam Siegel exploited the lack of transparency in those markets by victimizing the firm’s customers, including TARP banks.  His crime included defrauding buying customers about the price his firm paid so that he could charge more, defrauding selling customers about the price a buyer was willing to pay, and lying that a bond his firm already held in inventory was actually being sold by a seller at an artificially inflated price.  U.S. Attorney Deirdre Daly has shown great leadership, and her office and the FBI have been united with SIGTARP against crime related to the bailout.”

“Financial investors should not have to fear being deceived by brokers in an already risk-filled industry,” said FBI Special Agent in Charge Ferrick.  “The criminal actions of Mr. Siegel and others like him will continue to be investigated and brought to justice by the Financial Fraud Task Force.”

SIEGEL pleaded guilty to one count of conspiracy to commit securities fraud, which carries a maximum term of imprisonment of five years.  He was released on a $250,000 bond and is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 11, 2016.

On March 11, 2015, Matthew Katke, a registered broker-dealer and managing director at RBS Securities Inc., pleaded guilty to the same charge and also is cooperating with the government.

This matter is being investigated by the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.

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

The RMBS Working Group is led by Acting Associate Attorney General Stuart Delery, and co-chaired by Assistant Attorney General for the Criminal Division Leslie R. Caldwell, Principal Deputy Assistant Attorney General for the Civil Division Benjamin Mizer, U.S. Securities and Exchange Commission Director of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric T. Schneiderman.

For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, visit: www.stopfraud.gov.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on December 18, DUSTIN WHITTEN, 32, of Morris, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for his involvement in an insurance fraud scheme.

According to court documents and statements made in court, in May 2009, Ryan Geddes of Litchfield transferred to WHITTEN a residential property located in Old Forge, N.Y., while Geddes continued to use the property and pay the mortgage and maintenance expenses.  At the time, Geddes was being sued by a creditor who was seeking to collect a debt and identify Geddes’ assets.  In March 2011, WHITTEN and Geddes made arrangements for an insurance company to issue a policy on the New York property in WHITTEN’s name.  On July 4, 2011, after a bankruptcy court meeting about compensating Geddes’ creditors, the New York property was destroyed in a fire.  In September 2011, WHITTEN swore out an insurance claim on the property, representing himself as the owner and seeking compensation in the respective amounts of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire.  The claim was eventually denied by the insurance company. 

WHITTEN and Geddes have both admitted that the purpose of the scheme was to shield the insurance proceeds from Geddes’ creditors.

On April 17, 2015, WHITTEN pleaded guilty to one count of conspiracy to commit mail and wire fraud.

On April 28, 2015, Geddes pleaded guilty to charges related to this scheme and separate fraud schemes.  He is scheduled to be sentenced in February 2016.

This matter has been investigated by the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorneys Henry K. Kopel and Michael J. Gustafson.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on December 16, CHRISTOPHER SCULL, 36, of Naugatuck, waived his right to indictment and pleaded guilty before U.S. District Judge Janet C. Hall in New Haven to two counts of mail fraud stemming from a scheme to defraud investors of more than $120,000.

According to court documents and statements made in court, from approximately June 2011 and continuing until approximately January 2014, SCULL, while employed as an insurance agent with Bankers Life & Casualty Company (“Bankers Life”), devised and executed a scheme to defraud victims out of money.  As part of the scheme, SCULL induced one victim to make withdrawals from her annuity and give the money to SCULL by falsely representing that the victim owed certain fees in connection with the account.  SCULL caused the victim to submit an annuity withdrawal form and, after the victim received a check in the mail from Bankers Life, SCULL directed the victim to deposit the money into her account and write SCULL a personal check.  SCULL then used the money for his own benefit.

Judge Hall scheduled sentencing for March 10, 2016, at which time SCULL faces a maximum term of imprisonment of 20 years and a fine of up to $250,000 on each count.

This matter has been investigated by the U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that TED HAKEY, JR., 48, of Meriden, has been arrested on a federal criminal complaint charging him with intentionally damaging religious property, the Baitul Aman Mosque in Meriden.

HAKEY was arrested yesterday.  He appeared today before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained.   A detention hearing is scheduled for December 21 at 9:30 a.m.

As alleged in the criminal complaint, in the early morning hours of November 14, 2015, shortly after learning of the terrorist attacks in Paris, HAKEY who lived next door to the Mosque used his high powered rifle to discharge several rounds at the Mosque.  Four bullets hit the mosque, with three penetrating the building.  No one was inside the mosque at the time of the shooting and no one was injured during the incident.

“All citizens of this earth should be free to worship without fear of violence,” said U.S. Attorney Daly.  “As Americans, we must not let fear drive us away from our values and toward hateful and divisive acts against others.  The core mission of the Department of Justice involves the safety of every person and their protection against racially, religiously and ethnically motivated violence and intimidation.  We stand ready to prosecute individuals when rhetoric crosses the line to threats of violence or – as charged here – actual violence.  I thank the FBI, ATF, Connecticut State Police and Meriden Police Department for their excellent work in this important investigation.”

“This arrest should serve as a clear message that crimes of hate against individuals of any race, creed, gender or religious background will not be tolerated,” said FBI Special Agent in Charge Ferrick.  “This is the result of FBI, ATF, Connecticut State Police and the Meriden Police Department working night and day to bring some degree of comfort to a community that has been victimized by fear and hate.”

The charge of intentionally damaging religious property through use of a dangerous weapon carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, today announced that a federal grand jury in Bridgeport returned an indictment today charging LARRY TALLEDO-TORREJON, 29, a citizen of Peru last residing in Stamford, with orchestrating a murder for hire scheme.

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

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

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

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

TALLEDO-TORREJON has been detained since his arrest.

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

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 and is being prosecuted by Assistant U.S. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK ANTHONY GOULDBOURNE, 41, of Hartford, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of 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 another individual, at a U.S. Post Office in Hartford.  Claiming to be this individual, 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 the name of the other individual.

GOULDBOURNE, who is detained, is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 7, 2015, at which time he faces a maximum term of imprisonment of 10 years.

This case was investigated by the U.S. Department of State, Diplomatic Security Service, and is being prosecuted by Assistant U.S. Attorney Harold H. Chen.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CYNTHIA TANNER, 54, of Darien, pleaded guilty today in Hartford federal court to fraud and tax evasion offenses stemming from her embezzlement of approximately $800,000 from a Connecticut-based veterans services organization.

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 pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years.  She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 11, 2016.

TANNER was arrested on related state charges on June 2, 2014.  She is released on a $50,000 bond.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of theft of public funds.

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

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

Judge Hall scheduled sentencing for March 9, 2016, at which time NEWMAN faces a maximum term of imprisonment of 10 years, a fine of up to twice the amount of money stolen, and mandatory restitution to the Social Security Administration.

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

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 a federal jury in Hartford today found EARL O’GARRO, JR., 32, formerly of Marlborough, guilty of defrauding a specialty lender, insurance carriers and the State of Connecticut.  The trial before U.S. District Judge Alvin W. Thompson began on December 8 and, after deliberating for approximately one hour, the jury returned verdicts of guilty on all three counts.

“The defendant took advantage of friends and associates in the insurance industry to support a lifestyle he couldn’t afford,” said U.S. Attorney Daly. “I thank the FBI and our trial team for their expert investigation and prosecution of this matter, which led to a swift verdict of guilty.”

 “Today, victims of fraud have been given some degree of closure by the jury’s decision,” said FBI Special Agent in Charge Ferrick.  “The FBI and our law enforcement partners intend to continue to pursue these types of violations to the fullest extent of the law.”

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.

The jury found O’GARRO guilty of two counts of wire fraud and one count of mail fraud.  Each charge carries a maximum term of imprisonment of 20 years.  Judge Thompson scheduled sentencing for March 7, 2016.

O’GARRO has been released on a $500,000 bond since his arrest on November 21, 2014. He will now be subject to electronic monitoring while awaiting sentencing.

This matter is being 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 three Chinese nationals have been arrested on federal criminal complaints in connection with a scheme to obtain and illegally export sophisticated semiconductors stolen from the U.S. military.  DAOFU ZHANG, 50; JIANG GUANGHOU YAN, also known as “Ben,” 33; and XIANFENG ZUO, 37, were arrested this morning in Milford.

The three defendants made initial appearances before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and were detained.

As alleged in the criminal complaints, federal law enforcement agents began investigating YAN and a Chinese company known as HK Potential in 2012 for trafficking in counterfeit semiconductors.  In October 2014 and in March 2015, YAN sold a total of 45 counterfeit Intel microprocessors to an undercover agent who had advised YAN that the components would be used on a U.S. Navy contract involving submarines.

The complaints further allege that, in July 2015, YAN asked whether the undercover agent could obtain 22 Xilinx semiconductors, military grade, for which YAN would pay $37,000 each.  After the undercover agent advised YAN that the Xilinx components could be stolen from a U.S. Navy base, YAN offered to provide fake Xilinx components that could be substituted for the stolen components in order to prevent detection of the theft.  When asked whether the fake Xilinx components would work, YAN replied that “the fake one just look the same” but were “not ok for function.”  In November 2015, YAN shipped eight of the fake Xilinx components to the undercover agent.

ZHANG, YAN, and ZUO traveled to the U.S. on December 6, and they were arrested today attempting to take delivery of the Xilinx semiconductors from the undercover agent.

“The Justice Department and our federal law enforcement partners are committed to prosecuting those who would supply our armed forces with counterfeit electronic components, as well as those who attempt to steal sophisticated U.S. military components and distribute them to places unknown,” stated U.S. Attorney Daly.  “I thank the collaborative efforts of our partners in this long-term investigation, including the DCIS, HSI, FBI, U.S. Department of Commerce’s Bureau of Industry and Security, and U.S. Air Force’s Office of Special Investigations.”

The complaint charges ZHANG, YAN, and ZUO with violating the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years of imprisonment and a $1 million fine; and receipt of stolen government property, which carries a maximum penalty of 10 years of imprisonment and a $250,000 fine.  ZHANG and YAN are also charged with trafficking in counterfeit goods, which carries a maximum penalty of 10 years of imprisonment and a $2 million fine; and mail fraud, which carries a maximum penalty of 20 years of imprisonment and a $250,000 fine.  In addition, ZHANG and ZUO are charged with conspiracy, which carries a maximum penalty of five years of imprisonment and a $250,000 fine.

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

This matter is being investigated by the Defense Criminal Investigative Service, Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Department of Commerce’s Bureau of Industry and Security, and the U.S. Air Force’s Office of Special Investigations.  The case is being prosecuted by Assistant U.S. Attorney Edward Chang.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY KRANTZ, 50, of New York, N.Y., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation and ordered to pay a $100,000 fine for supplying customers with falsely remarked microprocessor chips, many of which were used in U.S. Military and commercial helicopters.

“We are committed to prosecuting individuals who distribute unapproved microprocessor chips and other electronic components for use by the U.S. Military,” said U.S. Attorney Daly.  “This crime poses a potential threat to the safety of the men and women of our armed services.  We thank the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General, for their diligent work on this complex investigation.”

“Today's sentence is another necessary step along the path to protect the integrity of the Department of Defense's supply chain,” said Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office.  “Distributors who opt for financial gain by introducing inferior products into mission critical equipment create an environment ripe for product failures.  Such disregard puts the warfighter at an unnecessary risk, ultimately impacting the mission readiness of our military that the nation depends on.  DCIS shields America’s investment in national defense by continuing to engage with our partner law enforcement agencies and prosecutors to bring to justice all who disrupt the reliability of our military's critical infrastructure.”

“The sentencing today of Jeffrey Krantz for supplying customers with falsely remarked microprocessor chips sends a clear signal that strong penalties await those that would seek to perpetrate fraud in the aerospace manufacturing industry,” said Todd Damiani, regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General.  “The DOT-OIG will work with our law enforcement and prosecutorial colleagues, to continue our dedicated efforts to uncover schemes involving suspect unapproved parts (“SUPs”), prevent SUPs’ use, and punish those who seek to compromise the integrity of DOT’s safety programs.”

According to court documents and statements made in court, KRANTZ was the CEO and an owner of Harry Krantz, LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers.  In 2005, KRANTZ entered into a business relationship with Jeffrey Warga, the president and owner of Rhode Island-based Bay Components, LLC, to sell military microprocessor chips to Bay Components, which would in turn sell them to a Connecticut company.  KRANTZ knew that the Connecticut company wanted new and original chips, not falsely remarked chips.

Between 2005 and 2008, KRANTZ purchased and sold, and caused to be purchased and sold, over a thousand chips to Bay Components, which, in turn sold them to the Connecticut company.  The chips were marked with certain information, including a certain manufacturer’s name and trademark, a date code, and a military part number.  In approximately December 2005, the first shipments of about 330 chips that KRANTZ had sold to Bay Components were rejected by the Connecticut company for being the wrong part because the chip contained the wrong die inside.  In 2006, KRANTZ replaced those chips with at least some of the replacement chips bearing the date code 9832.  Between 2006 and 2008, KRANTZ sold and caused to be sold at least 900 chips with date code 9832 to Bay Components, the majority of which were sold to the Connecticut company.  KRANTZ knew that the chips had originated from a parts supplier in China, and there was a high probability that the chips were falsely remarked not the original chips of the certain manufacturer as represented by the markings on the chip.  He also avoided engaging in common practices in the industry, including those which Harry Krantz LLC routinely engaged in for other military parts, to avoid confirming that the chips were likely remarked.

The investigation revealed that many of the chips were used in the assembly of U.S. Military and commercial helicopters.  The chips have been examined and determined not to be the root cause of any mechanical problems experienced by the helicopters to date.

On July 28, 2015, KRANTZ waived his right to indictment and pleaded guilty to one count of wire fraud.  In pleading guilty, KRANTZ also agreed to pay restitution in the amount of $402,650.  Judge Shea will issue a restitution order after further court proceedings.

As part of his guilty plea, KRANTZ also agreed not to be directly or indirectly involved in the buying or selling of electronic parts, for a period of two years.  He also has given up all control either directly or indirectly over Harry Krantz LLC, and all beneficial and/or financial interest, including ownership interest, in Harry Krantz, LLC, and will not reacquire such an interest.

On December 12, 2014, Warga pleaded guilty to one count of conspiracy to commit wire fraud.  He awaits sentencing.

This ongoing investigation is being conducted by the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PEDRO RIVERA, also known as “Cheito,” 37, of Groton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 116 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.  RIVERA’s mother and father, who assisted RIVERA’s cocaine trafficking operation, also were sentenced today.

According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.  The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States.  Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers.  Narcotics were also obtained from sources in New York City and Rhode Island.

More than 100 individuals were charged with federal and state offenses as a result of this investigation.

RIVERA arranged the shipment of cocaine from sources in Puerto Rico to the New London area, and was assisted by individuals who lived in and around Morovis, Puerto Rico, including his parents, JUAN RIVERA ORTIZ and IVETTE PAGAN RODRIGUEZ.  RIVERA then distributed the cocaine to customers in southeastern Connecticut through a network of associates.

Judge Bryant sentenced JUAN RIVERA ORTIZ, 58, to 30 months of imprisonment, followed by three years of supervised release, and IVETTE PAGAN RODRIGUEZ, 54, to five years of probation.

PEDRO RIVERA has been detained since his arrest on April 3, 2013.  On December 9, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more cocaine.

RIVERA ORTIZ and PAGAN RODRIGUEZ pleaded guilty on November 24, 2014.

This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department.  The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office;  Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.

The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel.  The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEVEN SANTUCCI, 39, of Waterbury, pleaded guilty today in Hartford federal court to one count of conspiracy to distribute anabolic steroids and one count of conspiracy to launder monetary instruments.

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

SANTUCCI used more than $120,000 in proceeds from the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies.

Twelve individuals were charged as a result of the investigation.  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 four long guns.

SANTUCCI is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 3, 2016, at which time he faces a maximum term of imprisonment of 30 years.

SANTUCCI was arrested on April 29, 2015, and is released on a $100,000 bond.

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.

New Haven - U.S. Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office for the District of Connecticut collected $14,215,633.55 in criminal and civil actions in Fiscal Year 2015.  Of this amount, $4,729,959.08 was collected in criminal actions and $9,485,674.47 was collected in civil actions.

Additionally, the District of Connecticut collected $27,311,898.49 in cases pursued jointly with other U.S. Attorney’s Offices and components of the Department of Justice.  Of this amount $320,954.29 was collected in criminal actions and $26,990,944.29 was collected in civil actions.

Attorney General Loretta E. Lynch announced on Thursday that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.

The more than $23 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch.  “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver.  I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

“This past fiscal year, our Office’s dedicated and talented attorneys and staff helped to recover over $41 million,” said U.S. Attorney Daly.  “We are gratified that these funds are returned directly to victims of crime, provide needed services for these victims and fund ongoing federal, state and local law enforcement efforts.  One of our primary missions is to seek justice for victims, remove ill-gotten gains from wrongdoers and protect the integrity of important government programs.”

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

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

In addition, the U.S. Attorney’s office in Connecticut, working with partner agencies and divisions, collected $4,443,273 in asset forfeiture actions in FY 2015.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation.  The Office is composed of approximately 65 Assistant U.S. Attorneys and approximately 50 staff members at offices in New Haven, Hartford and Bridgeport.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHERRY HILL CONSTRUCTION, INC., a company based in North Branford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation and a fine of $200,000 for underfunding its retirement plan and filing a false tax return.

On January 13, 2015, CHERRY HILL CONSTRUCTION, INC., (“CHERRY HILL”) pleaded guilty to one count of filing a false tax return, and one count of making a false statement in relation to documents required by the Employee Retirement Income Security Act of 1974 (“ERISA”).  ERISA is a federal law that sets minimum standards for retirement plans in private industry, including a requirement that plan sponsors provide adequate funding for a plan.

According to court documents and statements made in court, CHERRY HILL provides statewide service in site development, on-site crushing, trucking, demolition, as well as roll-off dumpsters, top soil, aggregates and landscaping.  CHERRY HILL was awarded and completed prevailing wage construction projects requiring payment of the prevailing wage rate plus the fringe rate.  The fringe rate is the cost of benefits to the employee.

When a company is awarded a prevailing wage project, the company must submit certified payrolls that list the hours, prevailing wage rate and fringe they are paying each employee.  The company can either pay the employee the fringe directly or open a benefit plan with the fringe payment being deposited into an account for the benefit of that employee.  The company is then paid by the federal, state or municipal governments the amount of payroll, including the fringe, after receiving the certified payrolls.  The government entity for which the project is being worked pays these funds only because the employer certifies that the prevailing wage and fringe is being paid to an employee directly or being deposited into a benefit plan.

CHERRY HILL opened a profit sharing/401(k) plan that was covered under ERISA.  CHERRY HILL has admitted that, in 2010 and 2011, it underfunded its retirement plan by approximately $950,000.  CHERRY HILL further admitted that it filed a corporate tax return for the 2010 tax year that inflated its actual contribution to the plan, which resulted in an increased employee benefit deduction.

CHERRY HILL has fully funded its retirement plan and paid $193,000 in back taxes, interest and penalties.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division; U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Labor – Employee Benefits Security Administration, and U.S. Department of Transportation – Office of Inspector General.  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 SUZANNE DIANNE BENT, 55, a resident of the Bronx, N.Y., was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation for passport fraud.

According to court documents and statements made in court, BENT is believed to be a native of Jamaica who was illegally brought to the U.S. by her grandmother in 1969.  BENT has a criminal history that includes multiple convictions for theft-related crimes, and she has used multiple aliases and dates of birth during her life

On April 1, 2013, BENT applied for a U.S. passport at the Stamford, Connecticut Passport Agency.  As proof of citizenship, she provided a fraudulent New York City birth certificate and other documentation.

The investigation further revealed that BENT had fraudulently obtained a Social Security number and, between August 2004 and March 2013, received approximately $76,365 in benefits from the Social Security Administration, Supplemental Security Income Program based on a claimed mental or physical disability.

BENT was ordered to pay restitution in the amount of $76,365.35.

BENT was arrested on December 5, 2014.  On July 20, 2015, she pleaded guilty to one count of making a false statement in an application for a U.S. passport.

At the conclusion of the sentencing hearing, BENT was taken into custody by U.S. Immigration and Customs Enforcement.

This matter was investigated by the U.S. Department of State, Bureau of Diplomatic Security; the Social Security Administration, Office of Inspector General – Office of Investigations; and U.S. Department of Homeland Security, Immigration and Customs Enforcement.  The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHERYL KARCHER, M.D., 57, of Brookfield, Conn., and New York, N.Y., has entered into a civil settlement agreement with the government in which she will pay $150,000 to resolve allegations that she violated civil provisions of the Controlled Substances Act.

KARCHER is a plastic surgeon associated with Sadick Dermatology located at 911 Park Avenue in Manhattan.  The allegations against her involve claims that she wrote at least 15 prescriptions for Percocet, a Schedule II Narcotic drug, outside the course of her normal medical practice.  The 15 prescriptions, which were filled at pharmacies in Connecticut, were not dispensed to the individuals whose name was on the prescriptions.

“The improper diversion of potent pharmaceuticals risks the safety of those individuals that ultimately use these drugs,” said U.S. Attorney Daly.  “This settlement sends a message to the medical community that there are real consequences for practicing medicine outside the proper course of medical practice.”

KARCHER was prosecuted by the Office of the Special Narcotics Prosecutor for the City of New York in a related criminal case.  The case against her was dismissed after she completed a court-ordered drug treatment program.

The federal investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, Conn.  The prosecution was led by Assistant U.S. Attorney Alan M. Soloway.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ELIJAH GRIFFIN, 25, of New London, pleaded guilty yesterday in Hartford federal court to being a felon in possession of firearms.

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

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

GRIFFIN has been detained since his arrest on April 30.  He is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on February 24, 2016, at which time he faces a maximum term of imprisonment of 10 years.

This matter is being investigated by the New London Police Department with the assistance of the Connecticut State Police and the Norwich Police Department.  The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that SHAUKAT G. DALAL, also known as Shaukathusein Dalal, 55, of East Hartford, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.

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

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

Judge Underhill scheduled sentencing for February 24, 2016, at which time DALAL faces a maximum term of imprisonment of five years and a fine of up to $250,000.  DALAL also has agreed to pay $97,289 in back taxes, plus applicable penalties and interest.

This case has been 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 BRANDEN HUERTAS, also known as “Branden Holloway,” 34, formerly of Norwalk and last residing in Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.

On May 13, 2014, HUERTAS was arrested by Bridgeport Police after he engaged officers in a foot pursuit.  After HUERTAS was apprehended, officers located a black bag containing a loaded .22 caliber revolver that HUERTAS had discarded during the chase.  At the time, HUERTAS was out on bond on state charges stemming from a series of arrests in 2014 for state domestic violence charges, including strangulation in the second degree, unlawful restraint and assault in the third degree.  He was also subject to a protective order that requires he surrender or transfer all firearms and ammunition.

HUERTAS has a lengthy criminal history that dates to 1998.

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 also illegal for a person who is subject to a protective order to possess firearms.

On May 28, 2015, HUERTAS pleaded guilty in federal court to one count of possession of a firearm by a convicted felon. 

As a special condition of supervised release, Judge Arterton ordered HUERTAS to abide by the terms and conditions of the protective order issued in connection with the state charges, which is in effect through 2025.  The protective order requires that HUERTAS refrain from any contact with the victim, and that he stay at least 100 yards away from her.

“Our Office will continue to prioritize the prosecution of individuals who illegally possess firearms – particularly those defendants who engage in acts of domestic violence or other violent offenses,” said U.S. Attorney Daly.  “Working closely with our state and local partners, we aim to ensure that federal resources are used most effectively to support these investigations and to protect vulnerable victims and our communities.”

This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds in collaboration with the Domestic Violence prosecutors of the State’s Attorney’s Office, Fairfield Judicial District.

U.S. Attorney Daly noted that victims of domestic violence can call the National Domestic Violence Hotline at 800-799-SAFE (7233), or visit www.thehotline.org.  Victims in Connecticut also can call the Connecticut Coalition Against Domestic Violence (CCADV) hotline at 888-774-2900 or (English) or 844-831-9200 (Español).

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK BIANCUR, JR., 41, of West Haven, waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven.

According to court documents and statements made in court, BIANCUR was employed as the Town of East Haven’s Planning and Zoning Administrator/Zoning Enforcement Officer.  In pleading guilty, BIANCUR admitted that he sought and received payments from at least five individuals in exchange for official acts he rendered as the Zoning Enforcement Officer.

In May 2015, a resident of East Haven contacted the East Haven Police Department and the FBI with information that he/she had been extorted by BIANCUR since approximately October 2012 and, as a result, had made cash payments to BIANCUR.  On May 19, 2015, BIANCUR called the victim and informed the victim that BIANCUR had to inspect an addition to the victim’s residence.  Although BIANCUR stated that he was “fighting” for the victim, he also required a payment of $200 or he would make the victim tear down the addition.  On May 21, 2015, the victim engaged in a consensually-recorded meeting with BIANCUR at BIANCUR’s office in East Haven Town Hall.  During the meeting, the victim gave BIANCUR $200 in cash, which BIANCUR put in his pocket.

In pleading guilty, BIANCUR also admitted that he sought and received $500 cash payments from two additional East Haven residents in order to resolve zoning violations.

BIANCUR pleaded guilty to one count of theft of honest services mail fraud, which carries a maximum term of imprisonment of 20 years.  A sentencing date has not been scheduled.

BIANCUR has been released on a $20,000 bond since his arrest on May 27, 2015.

Prior to his employment by the Town of East Haven, BIANCUR was employed by the City of West Haven and the City of Bridgeport. 

This matter is being investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

The Connecticut Public Corruption Task Force includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General.  Citizens are encouraged to report corruption to the Task Force by calling 203-238-0505.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that PETER TORRES, 47, of East Lyme, Connecticut, waived his right to indictment and pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to one count of attempted tax evasion.

According to court documents and statements made in court, from 2006 to 2011, TORRES failed to file tax returns and report to the Internal Revenue Service approximately $1.27 million in gross income generated through his work as a commercial fishing boat captain.  In pleading guilty, TORRES admitted that he was issued Forms 1099 that documented the income paid to him for each tax year, but he failed to timely file his tax returns as required and report the income and tax due to the IRS.  In his plea agreement, TORRES agreed that the tax loss for this period is between $250,000 and $550,000.

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

Judge Hall scheduled sentencing for February 22, 2016, at which time TORRES faces a maximum term of imprisonment of five years and a fine of up to $250,000.  As part of his guilty plea, TORRES acknowledged that he attempted to evade the assessment and payment of his taxes for the 2006 through 2011 tax years and has agreed to enter into a payment plan with the IRS to repay the back taxes and applicable penalties and interest.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERIC LONERGAN, 23, of Rio de Janeiro, Brazil, pleaded guilty today in New Haven federal court to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”).  The charge stems from an investigation into the distribution of controlled substances that caused multiple Wesleyan University students to overdose earlier this year.

“This defendant trafficked in a drug that caused multiple overdoses and nearly took the life of one Wesleyan student,” said U.S. Attorney Daly.  “As evidenced by this investigation and prosecution, Molly and other synthetic drugs are clearly not innocuous party drugs.  Students who use synthetic drugs can never be certain what they are ingesting.  Wesleyan students who bought these drugs from this dorm-room chemist literally risked their lives by relying on his purported expertise.  We thank the DEA, the Middlesex State’s Attorney’s Office and the Middletown Police Department for their collaboration and diligent work in this investigation.”

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

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

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

In approximately December 2014, Kramer became the primary supplier of MDMA at Wesleyan.  Kramer typically would sell the MDMA in .1 gram quantities for $20 each or he would sell 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.

The charge of conspiracy to possess with the intent to distribute, and to distribute, MDMA carries a maximum term of imprisonment of 20 years and a maximum fine of $1 million.  LONERGAN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 25, 2016, in Hartford.  He has been released on bond since his federal arrest on May 22, 2015.

On November 12, 2015, Kramer pleaded guilty to the same charge.  He is scheduled to be sentenced by Judge Bryant on February 11, 2016.

This matter is being 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 the U.S. Attorney’s Office has reached a settlement with Webster Bank to ensure equal access for individuals with disabilities at all Webster Bank locations, pursuant to the Americans with Disabilities Act (“ADA”).

The agreement resolves an ADA complaint filed by an individual who is deaf who alleged that Webster Bank would not do business with him using a video relay service.  Since the commencement of the investigation, Webster Bank has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations.

“Individuals who have disabilities must not be denied equal access to the services offered by financial institutions,” said U.S. Attorney Daly.  “Webster Bank’s cooperation during this investigation reflects the bank’s commitment to equal access and effective communication with all of its customers, including those with disabilities.  Our office has also received complaints alleging that other financial institutions have refused to communicate with individuals with disabilities who use relay services to communicate by telephone.  As such refusals suggest a discriminatory practice, we have begun a compliance review of banks in Connecticut to ensure that all such banks are complying with their obligations under the ADA.”

The agreement requires Webster Bank to accept video relay calls in all of its branches and to amend its policies, practices and training to ensure the removal of barriers to access at its branches.

Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. Among other things, the ADA requires financial institutions, accountants, lawyers, doctors and other businesses to provide auxiliary aids and services that are necessary for effective communication.  For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.

Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700.   More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

This matter was handled by Assistant U.S. Attorney Ndidi N. Moses with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division. 

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found IAN PARKER BICK, 20, of Danbury, guilty of fraud and money laundering offenses stemming from his operation of Ponzi scheme.  The trial before U.S. District Judge Jeffrey Alker Meyer began on November 6.

“Mr. Bick repeatedly lied to victim investors, took their money and used it to take trips with friends, on shopping sprees, to purchase jet skis, and also to pay off previous investors who were promised unrealistic returns,” U.S. Attorney Daly said.  “I thank the FBI, IRS Criminal Investigation, U.S. Postal Inspection Service, Connecticut Department of Banking and Danbury Police Department for their diligent investigation and prosecution of this matter.”

According to the evidence at trial, BICK was a principal and/or managing member of various Danbury-based entities, including This Is Where It’s At Entertainment, LLC, Planet Youth Entertainment, W&B Wholesale, LLC, and W&B Investments, LLC.  Using these entities, BICK solicited investment funds from his friends, former classmates, acquaintances, and their parents by promising high investment returns over relatively short periods of time.  BICK falsely represented to victim-investors that he could generate the high investment returns by using their funds to purchase electronics and electronic devices, such as iPhones, tablets and head phones, and by reselling the items for a substantial profit via the Internet.  However, the electronic resale business never actually began in earnest and did not return any meaningful profit.  BICK also falsely represented to certain victim-investors that he could generate high investment returns by using their funds to organize and promote concerts at various venues in Connecticut and Rhode Island.  BICK falsely represented that he had made significant profits organizing and promoting concerts in the past.

BICK failed to invest the funds he received as he had represented and instead used invested funds for unrelated and unsuccessful businesses, and to pay personal expenses, including hotel stays and to purchase jet skis.  BICK also used invested funds to issue payments, purportedly as “interest payments” and as “return of principal,” to certain victim-investors.

Through this scheme, BICK defrauded more than 15 investors out of a total of nearly $500,000.

BICK was charged in a 15-count indictment on January 8, 2015.  The jury found BICK guilty on six counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, and one count of money laundering, which carries a maximum term of imprisonment of 10 years.

The jury found BICK not guilty on two counts of wire fraud and one count of making a false statement to federal law enforcement, and could not reach a verdict on three counts of wire fraud and one count of money laundering.  The government dismissed one count of money laundering prior to the trial.

Judge Meyer scheduled sentencing for March 2, 2016.  BICK is released on a $250,000 bond.

This matter has been investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the assistance of the Connecticut Department of Banking and the Danbury Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Christopher W. Schmeisser.

Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to ctsecuritiesfraud@ic.fbi.gov.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH T. MORRIS, 52, of Fort Lauderdale, Fla., formerly of Connecticut, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 27 months of imprisonment, followed by three years of supervised release, for operating two investment schemes that defrauded individuals out of more than $200,000.

According to court documents and statements made in court, MORRIS and two other individuals formed a company in October 2011 to develop business opportunities in Iraq.  The company’s initial focus was on establishing a pizza restaurant at the U.S. Consulate compound in Erbil, Iraq, and establishing a business to distribute and install specialty window film on vehicles and at hotels, residences, and government buildings, which would protect windows and windshields from blast and breakage, and provide heat retention, ultra-violet shielding, and privacy.  MORRIS was the company’s in-country manager in Iraq.

MORRIS made numerous fraudulent representations to his co-founders regarding the restaurant and the window film business, knowing that the representations would be communicated to potential investors to induce them to invest in the company.  Through the use of fraudulent emails and photographs, MORRIS falsely represented that a lease had been signed to establish a pizzeria on the U.S. consulate compound in Erbil, that renovations were underway, and that progress was being made toward completing renovations and opening the restaurant.  MORRIS also falsely represented that the company had an exclusive arrangement with a specialty window film manufacturer to distribute and install the window film in all of Iraq.  Based on these misrepresentations, MORRIS caused approximately a dozen investors, most of whom were U.S. military veterans, to invest approximately $175,000 in the company.  Instead of using the money from investors to pay for legitimate business expenses, MORRIS diverted large sums of money for his own personal use.

The scheme was revealed in late April to early May 2012 when one of the co-founders discovered that the company did not have a lease or agreement to open and operate a pizza restaurant at the U.S. consulate compound in Erbil and that the company did not have an exclusive arrangement with a window film manufacturer to distribute and install specialty window film in Iraq. 

Between May 2012 and December 2012, MORRIS also defrauded two individuals out of a total of approximately $20,000 in start-up money that they provided to MORRIS as part of a plan to create an air cargo company based in Ghana.  Instead of using the funds for business expenses, MORRIS diverted large sums of money for his personal use.

As part of his sentence, MORRIS was ordered to pay restitution in the amount of $205,849.

MORRIS pleaded guilty to one count of wire fraud on June 9, 2015, and has been released on bond.  He was ordered to report to prison on January 15, 2016.

This matter was investigated by the U.S. Secret Service, the Wilton Police Department and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies.  The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on November 20, JOEL DELEON, 34, of Hartford, was sentenced by U.S. District Judge Michael P. Shea in Hartford to 51 months of imprisonment, followed by four years of supervised release, for possession of heroin with intent to distribute.

According to court documents and statements made in court, on November 19, 2014, Hartford Police Department detectives observed DELEON engage in what they believed to be a hand-to-hand narcotics transaction.  The detectives stopped DELEON’s vehicle and, upon questioning, DELEON admitted that he had narcotics and a handgun.  A search of the vehicle’s glove box revealed approximately 30 individualized bags of heroin and a High Standard Sentinel .22 caliber revolver, which had an obliterated serial number and was loaded with nine rounds of .22 caliber ammunition.

DELEON has been detained since his arrest on November 19, 2014.  On August 28, 2015, he pleaded guilty to one count of possession of heroin with intent to distribute.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department.  The 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 BRIAN MOORE, 26, of Detroit, Michigan, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for organizing and carrying out a smash-and-grab robbery of a Stamford jewelry store in November 2014.

According to court documents and statements made in court, on November 26, 2014, three of MOORE’s accomplices, armed with hammers, entered Sidney Thomas Jewelers in the Stamford Town Center Mall during regular business hours.  Soon after entering, the accomplices used the hammers to smash open a jewelry display case and removed more than $250,000 worth of Rolex watches.  The three accomplices then fled with security guards in pursuit.  One of MOORE’s accomplices, Richard Mathew Bailey, was caught and apprehended inside the mall while fleeing.

MOORE helped organize and carry out the robbery by soliciting others to participate and partially funding it.  He also drove accomplices from Detroit to Stamford to carry out the robbery, and picked them up after the robbery in order to return to Detroit.

Judge Bolden also ordered MOORE to pay restitution to victims in an amount to be determined at a later date.

On August 31, 2015, MOORE pleaded guilty to one count of interfering with commerce by robbery.

Richard Mathew Bailey and a third defendant, Dajuhn Griffin, both from Detroit, have pleaded guilty to the same charge and await sentencing.

This case was investigated by the Federal Bureau of Investigation and the Stamford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE SERRANO, 30, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day imprisonment, followed by two years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, in February 2015, during an ongoing investigation into drug trafficking activities in Hartford, the Federal Bureau of Investigation (“FBI”) obtained information that an individual, later identified as SERRANO, was seeking to sell a handgun.  On February 11, 2015, SERRANO sold a Kel-Tec, Model P-11, 9mm handgun, which was loaded with nine rounds of ammunition, to an individual who was cooperating with law enforcement, in exchange for $750.

SERRANO was arrested at his residence on June 15, 2015.  A subsequent search of his residence revealed approximately 300 rounds of assorted .380 and 9mm caliber ammunition, approximately five pounds of “Kisha Kole” synthetic marijuana packages, approximately 4.6 grams of marijuana and $6,523 in cash.  Following SERRANO’s arrest, he and his wife forfeited two additional handguns.

In 2007, SERRANO was convicted of a felony offense involving unlawful possession of a handgun.   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.

SERRANO has been detained since his arrest.  On September 3, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.

State charges related to the possession of synthetic marijuana are pending against SERRANO.

This case was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The 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, Christina Scaringi, Special Agent in Charge of the Northeast Region of HUD’s Office of Inspector General, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and James V. Buthorn, Acting Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, announced that TIMOTHY W. BURKE, also known as “Tim Burke,” “William Burke,” “Bill Burke,” “Jeff Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” and “Burt,” 64, of Easton, was arrested today on a federal criminal complaint charging him with operating a long-running fraud scheme that targeted distressed homeowners.   

BURKE appeared this afternoon before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained.  A detention hearing is scheduled for Monday, November 23, at 11:15 a.m.

As alleged in the criminal complaint, since at least May 2008 and continuing to at least September 2015, BURKE engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages.  The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership.  BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure.  After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property.

The complaint 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.  BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages, taxes, insurance, association dues, or other expenses, and he failed to pay any rental income he was collecting to the homeowners.  The investigation revealed that homeowners often discovered on their own, and to their surprise, that BURKE had rented out their houses.  Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.

The complaint alleges that BURKE’s fraud scheme has involved dozens of residential properties throughout Connecticut, and that BURKE has made hundreds of thousands of dollars to which he was not entitled.  As part of the scheme, 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.  The investigation has revealed that 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; and The Complete Handyman, LLC.

The complaint 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 five years imprisonment and three years of supervised release.  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 criminal complaint charges BURKE with mail fraud, an offense that carries a maximum term of imprisonment of 20 years.

U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt.  Charges are only allegations, and 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.

This investigation is being conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, and the Connecticut State Police.  This case is being prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant U.S. Attorney David T. Huang.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BONNEY J. HEBERT, 60, of Killington, Vermont, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 36 months of imprisonment, followed by three years of supervised release, for stealing more than $10 million from Hartford-based Aetna Life Insurance Company.

According to court documents and statements made in court, HEBERT was the sole owner and president of Academic Risk Resources and Insurance, LLC (“ARRI”), a risk management and insurance brokerage agency based in Boston.  ARRI’s business included brokering insurance contracts between health insurance providers and colleges or universities in order to provide health insurance for students and other individuals affiliated with the college or university.  In July 2007, HEBERT and ARRI began serving as the broker for a student health insurance contract entered into between Aetna and Rutgers, the State University of New Jersey.  The contract between Aetna and Rutgers provided that premiums would be paid by Rutgers to ARRI and then transmitted by ARRI to Aetna.

Between 2009 and 2012, HEBERT failed to pass along to Aetna $10,358,728 in premiums paid by Rutgers.  She used the stolen funds on personal expenses and to cover the business expenses of ARRI.

On June 2, 2015, HEBERT pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.

HEBERT disclosed her fraudulent scheme to Aetna representatives in June 2012.  She subsequently sold ARRI to another business and directed that payments related to the sale be made directly to Aetna.  Through these payments, HEBERT has repaid Aetna approximately $1.59 million.  HEBERT also has not collected more than $900,000 in commissions owed to her by Aetna.  As a result, HEBERT currently owes Aetna $7,846,305.45 in restitution.

This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY SABATO, 57, of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 165 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine.

According to court documents and statements made in court, from approximately March 2013 to March 2015, SABATO conspired to distribute crack cocaine.  During the investigation of this matter, an undercover officer purchased crack from SABATO and his co-defendant, Miguel Joel Roman of Hartford.  The investigation also revealed that SABATO was selling prescription narcotics.

SABATO and Roman were arrested on March 24, 2015, after they sold approximately two ounces of crack to the undercover officer in exchange for $4,000.  A search of SABATO’s residence on that date revealed crack cocaine, powder cocaine, two digital drug scales, narcotics paraphernalia and approximately 10 mobile phones.

SABATO has been detained since his arrest.  On July 6, 2015, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”).

SABATO has sustained 35 convictions since 1975, including state convictions for assault, larceny, burglary and narcotics offenses, and federal convictions for firearms, gambling, and fraud offenses.

In addition to noting SABATO’s lengthy criminal history, Judge Bryant found that SABATO supplied the firearm that was used in the murder of Darien Police Officer Kenneth Bateman in May 31, 1981.

On November 12, 2015, Roman pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base.  He is scheduled to be sentenced on February 10, 2016.

This investigation has been conducted by the FBI’s New Haven Safe Streets Task Force, the West Haven Police Department and the Darien Police Department.  The Task Force includes personnel from the FBI, West Haven Police Department, New Haven Police Department, Milford Police Department and Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HATEM SALEM, 46, of Waterbury, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by three years of supervised release, for distributing GHB and other controlled substances.  SALEM was ordered to perform 120 hours of community service while on supervised release.

According to court documents and statements made in court, from March 2011 to October 2013, SALEM ordered gallons of GBL, Ketamine and other controlled substances from China, Pakistan and other locations.  GBL (Gamma-Butyrolactone) is used to produce GHB (Gamma Hydroxybutyrate), which is commonly known as the “date rape drug.”  SALEM then converted the GBL to GHB and sold it, along with other controlled substances, to fellow body builders and to nightclub and bar patrons at various locations in Connecticut and New Jersey.  The investigation also revealed that SALEM sold GHB, “Molly,” cocaine, Adderall and other controlled substances.

SALEM has been detained since his arrest on October 31, 2013.  On August 24, 2015, he pleaded guilty to one count of unlawful importation of a listed chemical (GBL) with intent to manufacture a controlled substance.

SALEM’s criminal history includes two prior federal convictions and a prior state conviction.  On April 2, 1998, SALEM was arrested by the FBI in New York for importing and distributing steroids and other controlled pharmaceutical drugs.  He subsequently pleaded guilty and was sentenced to five years of probation.

On May 13, 2003, SALEM was arrested by the DEA in New York for distributing wholesale quantities of GHB in New York and Connecticut.  During the investigation, SALEM had sold gallons of GHB to an undercover agent.  He pleaded guilty and was sentenced to 51 months of imprisonment.

On July 18, 2012, SALEM was arrested by the Ansonia Police Department for attempting to fill a fraudulent prescription at a pharmacy for 180 30-milligram oxycodone pills.  He pleaded guilty and was sentenced to a one year of imprisonment, execution suspended, and two years of probation.

This matter was investigated by Homeland Security Investigations and the Drug Enforcement Administration’s New Haven Tactical Diversion Squad.  The case was prosecuted by Assistant U.S. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Milford Police Chief Keith Mello announced that LJUDMIL KLJUSEV, M.D., who has operated a psychiatry practice located at 227 Naugatuck Avenue in Milford, was arrested today on a federal criminal complaint charging him with distributing narcotics outside of the scope of professional practice, and money laundering.  DUSAN BOSOTOV, who was employed by KLJUSEV, also was arrested on a charge of illegally distributing narcotics.

KLJUSEV, also known as “Dr. K.”, 51, was arrested this morning at his residence in Fairfield.  He appeared this afternoon before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained.  BOSOTOV, 32, was arrested this morning at his residence in Clifton, New Jersey.  He appeared before a U.S. magistrate judge in Newark and was released on a $200,000 bond.  Although he was referred to as “Dr. B.,” BOSOTOV is not a licensed physician.

As alleged in the criminal complaint, KLJUSEV has been a high-volume prescriber of Adderall and Xanax to patients who pay for office visits and prescriptions in cash.

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

The investigation, which has included the use of confidential witnesses and an undercover officer posing as patients, revealed that KLJUSEV prescribed the drugs without a full medical examination of the patient, provided prescriptions without confirming conditions that would medically require treatment using these drugs and dispensed prescriptions in exchange for cash to patients who display substance abuse and addiction behaviors.  KLJUSEV also directed non-physician employees, including BOSOTOV, to write prescriptions signed by KLJUSEV when KLJUSEV was out of the country.  KLJUSEV then deposited the cash proceeds of his unlawful activities into a business account, which he used to fund his personal expenses, including mortgage payments, international travel, and clothing.

KLJUSEV and BOSOTOV are each charged with conspiracy to distribute and to possess with intent to distribute narcotics, an offense that carries a maximum term of imprisonment of 20 years.  KLJUSEV also is charged with money laundering, an offense that carries a maximum term of imprisonment of 10 years.

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

This ongoing investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad and the Milford Police Department.  The DEA Tactical Diversion Squad includes officers from the Bristol, Greenwich, Hamden, Shelton, Vernon, West Hartford and Willimantic Police Departments.  This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Avi Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ZACHARY KRAMER, 22, of Bethesda, Maryland, pleaded guilty today in New Haven federal court to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”).  The charge stems from an investigation into the distribution of controlled substances that caused multiple Wesleyan University students to overdose earlier this year.

According to court documents and statements made in court, in approximately September 2014, KRAMER, who was a student at Wesleyan in Middletown, Connecticut, began purchasing and reselling a substance he knew as “Molly” and which he believed to be ecstasy or MDMA, a Schedule I controlled substance.  After obtaining bulk quantities of the drug from another student, KRAMER sold it in smaller quantities to students at Wesleyan.

In approximately December 2014, KRAMER became the primary supplier of MDMA at Wesleyan.  KRAMER typically would sell the MDMA in .1 gram quantities for $20 each or he would sell 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, KRAMER was still supplied by the same individual who provided KRAMER the MDMA in bulk quantities.  In approximately January 2015, KRAMER purchased approximately 45 grams of MDMA from this supplier.  He 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, a Schedule I controlled substance.

The charge of conspiracy to possess with the intent to distribute, and to distribute, MDMA carries a maximum term of imprisonment of 20 years and a maximum fine of $1 million.  KRAMER is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 10, 2016, in Hartford.

KRAMER has been released on bond since his federal arrest on May 22, 2015.

This matter is being 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 JIMEL FRANK, also known as “30” and “Velly,” 28, of Hartford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to committing the murder of Anthony Parker of Hartford in April 2011.

This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA and Hartford Police Department into narcotics trafficking by members and associates of the Westhell and Team Grease groups and group-related violent activity.  The Cold Case Unit of the Office of the Chief State’s Attorney is actively participating in the investigation.

At approximately 10:47 a.m. on the morning of April 6, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 15 Thomaston Street in the Blue Hills Section of Hartford.  Officers responding to the scene located Anthony Parker, also known as “Smooth,” 24, seated in the driver’s seat of a vehicle in the driveway of 15 Thomaston Street.  Parker was unconscious and suffering from multiple gunshot wounds.  Parker was transported by ambulance to Saint Francis Hospital where he ultimately succumbed to his injuries and was pronounced deceased.

FRANK was a member of the Wall Street group, which later became generally known as “Team Grease.”  In pleading guilty, FRANK admitted that he and another individual, who were both armed with 9mm handguns, opened fire on Parker from opposite sides of the vehicle in which he was seated.

FRANK pleaded guilty to one count of committing a Violent Crime in Aid of Racketeering, namely the murder of Anthony Parker.  Judge Arterton scheduled sentencing for February 5, 2016, at which time FRANK faces a maximum term of life imprisonment.

FRANK has been detained since his arrest on February 19, 2015.

The homicide of Anthony “Smooth” Parker was included in cold case playing cards sold to inmates in Connecticut’s state correctional facilities.  Each card in the deck features a photograph and brief details about a homicide or missing person case and lists telephone, mail and e-mail contacts that inmates can use to supply information.

This investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA, Hartford Police Department and Cold Case Unit of the Office of the Chief State’s Attorney.  The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed, and Supervisory Assistant State’s Attorney Patrick Griffin, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.

(Click here to watch a video of the conference)

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that FBI Director James Comey and NAACP Chairman Roslyn Brock will visit New Haven on Monday to speak at Building Bridges: The Community and Law Enforcement, a one-day event aimed at strengthening the relationship between law enforcement and the African American Community.

“After the massacre at Mother Emmanuel Church in Charleston this past June, the Greater New Haven Clergy Association reached out to the U.S. Attorney’s Office,” stated U.S. Attorney Daly.  “That first meeting has grown into a continuing partnership committed to building a strong relationship between law enforcement and the community at large, grounded in fairness, mutual respect and an abiding dedication to justice.  We thank the many organizations that have sponsored this important discussion and the individuals who are participating.  We encourage all to attend.”

The Building Bridges Conference is co-sponsored by the U.S. Attorney’s Office, Greater New Haven Clergy Association, Yale Black Law Students Association, Yale Law School, Federal Bureau of Investigation, New Haven Police Department, Greater New Haven Branch of the NAACP and the National Organization of Black Law Enforcement Executives for Connecticut.  The Conference has been funded by the generous support of Yale Law School’s Oscar M. Ruebhausen Fund and members of the Greater New Haven Clergy Association.

 “We are hopeful that this conference will be the beginning of bridging the divide between the community and law enforcement officers,” stated the Rev. Dr. Boise Kimber of the First Calvary Baptist Church in New Haven.  “Thanks to U.S. Attorney Deirdre Daly, Chief Dean Esserman, Mayor Tony Harp and Rev. James Newman, President of the Clergy Association, for hearing the cry of this community.  Let the healing begin, not only in this state but throughout this country.”

In addition to keynote addresses by FBI Director Comey and NAACP Chairman Brock, the conference will feature three panel discussions:  Communities At Risk, Civil Rights Investigations and Prosecutions, and Project Longevity: Connecticut’s Community & Law Enforcement Partnership.  The event will conclude with a performance by the Yale Gospel Choir.

The conference will be held on November 16, 2015 from 1:00 p.m. to 5:00 p.m. at Cooperative Arts and Humanities High School, 177 College Street, New Haven.  Doors open at 12:30 through the Crown Street entrance.  Parking at the Temple Street Garage will be validated for the first 100 arrivals.  Entrance is free, but prior registration is requested.

Interested attendants can register by clicking this link.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two New Haven Hotels, the Omni Hotel at Yale and Village Suites (formerly Premiere Hotel and Suites), have entered into settlement agreements with the U.S. Attorney’s Office as a result of an ongoing review to determine if certain New Haven-area hotels are being operated in compliance with the Americans with Disabilities Act (ADA).

Under federal law, private entities that own or operate “places of public accommodation,” which includes hotels, are prohibited from discriminating on the basis of disability.  The ADA authorizes the U.S. Department of Justice to investigate complaints and to undertake periodic reviews to determine compliance by covered entities.  The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.

As part of a compliance review survey, 12 randomly-selected New Haven area hotels were asked to complete and return a survey form.  Onsite inspections to confirm survey responses were then conducted and each hotel was reviewed for its compliance with federal law.  Six of the surveyed hotels were found to have ADA violations.  The government has been working with the owners and operators of each hotel found in violation in an effort to secure voluntary compliance.  Previously, three of the six hotels found in violation, the La Quinta Inn and Suites, Courtyard Marriott and New Haven Hotel, entered into settlement agreements with the government.  The government continues to work with the remaining hotel to secure a voluntary compliance agreement and address existing ADA violations.

The hotel survey was conducted in accordance with the Justice Department’s statutory responsibility to review compliance with federal law, and not in response to any specific complaint against any of the hotels within the scope of the review.  Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation within the District of Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.

Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

This matter was handled by Assistant U.S. Attorneys David Nelson, Vanessa Avery, and Ndidi N. Moses, in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

The following appeared in the November 2015 issue of Connecticut Guardian:

As a service member or veteran, you have undoubtedly faced obstacles and challenges both during and after your military service to our Country.  The U.S. Attorney’s Office for the District of Connecticut and the U.S. Department of Justice recognize these challenges and our obligation to protect your rights and interests as service members and veterans.  For over five years, through our Active Duty and Veterans Committee, we have coordinated with federal, state and local agencies and advocates to help ensure that legal protections of your rights are a reality in Connecticut.  We have obtained settlements for veterans and done extensive outreach to military bases, veterans groups, and professional organizations to educate the public about the protections available for service members and veterans.

As we approach Veterans Day, we reiterate our commitment to serve you as you have served our country by outlining our major accomplishments ensuring that service members returning from active duty are not penalized by their civilian employers; that service members and their families overseas do not forfeit their right to vote; and that active duty service members and their families receive the full benefit of the consumer and financial protections provided under law.

Employment Rights and the Uniform Services Employment and Reemployment Rights Act (USERRA)

While you are deployed and working to protect our country, you should be confident that your civilian job will be there when you return home. We enforce the provisions of USERRA to ensure that employment and employment benefits will be reinstated when you return from military service.  The provisions of USERRA protect active duty service members and veterans.  USERRA regulations apply to virtually all civilian employers: federal and state governments, as well as private employers.  Even if you are employed in a temporary job, you may be entitled to USERRA’s protections.

Where employers violate USERRA’s provisions, the Justice Department and the U.S. Attorney's Office can bring an action in federal court on your behalf to obtain injunctive relief, lost wages and benefits, double liquidated damages, as well as attorney fees and costs.  Last year, the Justice Department brought actions on behalf of over 10 service members and collected over $300,000 for violations of USERRA.  Additionally, several years ago in Connecticut, a federal judge ordered a bank that violated USERRA’s provisions to pay $779,000 in back pay, damages, and attorney’s fees to its employee.

Financial and Consumer Protections -- Servicemembers Civil Relief Act (“SCRA”)

When you are preparing for active duty or are returning from active duty, you should not have to worry about your car being repossessed or your home being subjected to an illegal foreclosure without your knowledge.  The provisions of the SCRA protect you by postponing or suspending certain obligations associated with rental agreements, automobile leases, mortgage foreclosures, evictions, security deposits, installment contracts, student loan payments and more.  The SCRA also eases financial burdens and provides some relief from credit obligations and court proceedings while you are on active duty.

Where lenders violate SCRA’s provisions, we can bring an action in federal court to obtain injunctive relief and monetary damages.  For example, the Justice Department recently settled with five of the nation’s largest mortgage service providers for unlawful foreclosures.  Under the settlements, a total of 2,413 service members are eligible to receive over $311 million dollars.  Earlier this year, the Justice Department settled a case with a motor vehicle lender which required the lender to pay $9.35 million to service members whose motor vehicles were illegally repossessed.  Last year, the Department signed a settlement with a student loan servicer, requiring it to pay $60 million to 77,795 service members for overcharging on student loans.

Voting Rights -- Uniformed and Overseas Citizens Absentee Voting Act (“UOCAVA”)

As citizens of the United States, you have a right to vote in elections for federal offices even when you are deployed.  UOCAVA guarantees Americans serving in our uniformed services, their families and U.S. citizens living overseas the right to register and vote absentee in elections for federal office.  Its protections are designed to ensure military and overseas voters a meaningful opportunity to request and receive their absentee ballots in time to vote and have their votes counted.  Protecting the voting rights of our service members and overseas citizens is one of the highest priorities of the Department of Justice.

The Justice Department vigorously enforces UOCAVA, which requires, among other things, that states and territories transmit requested absentee ballots to military and overseas voters at least 45 days prior to federal elections.  Over the years, the Department has gone to court or reached settlement agreements with many states to remedy violations of UOCAVA’s requirements. Since Congress enacted the Military and Overseas Voter Empowerment (MOVE) Act to expand UOCAVA’s protections in 2009, the Department has filed 15 cases and entered numerous out of court agreements to remedy UOCAVA violations and ensure future compliance with its requirements.

For example, prior to the 2014 federal general election in West Virginia, the Department brought a UOCAVA suit and obtained a consent decree to extend the ballot receipt deadline as well as a subsequent court order to count the votes for federal office on ballots submitted by military and overseas voters after the state failed to transmit the final ballots to these voters in a timely fashion.

Americans with Disabilities Act (“ADA”)

The challenges you face on reentry to civilian life may be compounded by issues related to physical injuries, post-traumatic stress disorder, traumatic brain injuries, and/or substance abuse.  The Justice Department and U.S. Attorney's Office enforce the ADA, which protects you and your family members from discrimination on the basis of disability.  The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment (based on complaints referred from the EEOC), state and local government services, public accommodations, commercial facilities, and transportation. Injunctive relief, compensatory damages, and, attorney’s fees are available. The Justice Department and U.S. Attorney's Office may also assess civil penalties.

The Justice Department and U.S. Attorney's Office have an active ADA docket, composed of a wide variety of cases against state and local governments as well as private entities for failing to make reasonable modifications to assist people with disabilities.  Entities that have violated the ADA have been required to pay monetary damages to compensate those impacted.  Recently, the U.S. Attorney's Office settled a case with a local business that refused to allow a veteran to enter with her service dog.  The U.S. Attorney's Office required the local business to make sweeping changes to its policies, train its staff, and post signs on its property notifying the public of their rights.  The Justice Department also recently settled a case against a hotel chain requiring it to pay monetary damages to compensate a veteran and his family who were denied the right to stay in the hotel because of his service animal.    Complaints may be filed in a number of ways including by using our complaint form located on www.ada.gov.

Fair Housing Act (“FHA”)

After serving our Country, some of you may have difficulty securing housing because of discrimination.  The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  The FHA authorizes the court to award injunctive relief, monetary damages and, in some cases, civil penalties.

In one case, the Justice Department sued a landlord for violating the FHA because he refused to allow a veteran to keep an assistance animal in his apartment.  The landlord settled with the Department and agreed to pay the tenant $20,000 in compensation.   In another case, the Department entered into a $300,000 settlement with a mobile home park owner who was alleged to have sexually harassed female tenants of the park, including several women whose husbands were stationed at the nearby army base.

As current or former members of the military, you have sacrificed to protect our nation.   It is our privilege to do everything in our power to enforce the federal laws designed to protect you and your families.  We encourage you to come forward and notify us of any issues or problems you or your families are facing.  We welcome and look forward to hearing from you on how the U.S. Attorney's Office and Justice Department can better help you and your families live securely in this Country that you have helped protect and defend.

Please feel free to call my office with questions, suggestions, and complaints at 203 821 3700 or write to us at Active Duty and Veterans Committee, U.S. Attorney’s Office for the District of Connecticut, Attn: John Fitzgerald, 157 Church Street, 25th Floor, New Haven, CT 06510.  You may also visit http://www.justice.gov/crt-military.

On behalf of the U.S. Attorney’s Office of the District of Connecticut:  Thank you for your service to our Country. We could not be more proud of your dedication and sacrifice. Please know that we are here to serve you and protect your rights.

Deirdre M. Daly was nominated by President Barack Obama to serve as the 51st U. S. Attorney for the District of Connecticut.  Ndidi N. Moses is an Assistant U.S. Attorney and the Civil Rights Coordinator for the Civil Division.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAMES CAVE, 44, of Winsted, pleaded guilty yesterday in New Haven federal court to federal firearm offenses.

According to court documents and statement made in court, in 2014 and early 2015, CAVE obtained a Norinco MAK 90, 7.62 x 39 caliber semi-automatic rifle, a Smith & Wesson M&P, .40 caliber handgun, and a Shooters Arms Mfg. M1911GI, .45 caliber handgun, all of which he transported into Connecticut and sold to another individual.

On April 4, 2015, CAVE sold a Smith & Wesson 586, .357 caliber handgun to an individual who was cooperating with law enforcement.  Investigators subsequently determined that the handgun had been stolen from a residence in Connecticut.

On April 7, 2015, CAVE met an undercover ATF agent at a location in Torrington and sold him a Webley, model Mark IV .455 caliber revolver in exchange for $700 in cash.  This firearm also had been stolen from a residence in Connecticut.

CAVE sustained a felony conviction in Connecticut state court in October 2003.

CAVE pleaded guilty to one count of possession of a firearm by a previously convicted felon, and one count of engaging in the business of dealing firearms without a license.  When he is sentenced by U.S. District Judge Jeffrey Alker Meyer, CAVE faces a maximum term of imprisonment of 15 years.  A sentencing date has not been scheduled.

CAVE was arrested on a criminal complaint on April 30, 2015, and is released on a $100,000 bond.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Torrington Police Department.  The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARK LEIGH-JAMES, also known as “Rich,” 23, of Stratford, has been indicted on narcotics trafficking and firearm possession offenses.

This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Fairfield Police Department.  As alleged in court documents, in July and August 2015, Fairfield Police made four controlled purchases of a total of approximately 58 grams of methamphetamine from LEIGH-JAMES.  In August and September 2015, Fairfield Police and the DEA Task Force made two additional controlled purchases of a total of approximately 187 grams of methamphetamine from LEIGH-JAMES.

October 5, 2015, LEIGH-JAMES was arrested on federal criminal complaint.  At the time of his arrest, LEIGH-JAMES was carrying a backpack that contained approximately 7.5 grams of heroin.  A subsequent search of LEIGH-JAMES’ vehicle revealed a second backpack containing approximately 120 grams of methamphetamine, a loaded .380 semi-automatic handgun and a loaded .44 magnum revolver.

On October 14, 2015, a federal grand jury in Bridgeport returned a nine-count indictment charging LEIGH-JAMES with two counts of possession with intent to distribute, and distribution of, 50 grams or more of methamphetamine, and one count of possession with intent to distribute 50 grams or more of methamphetamine.  These charges carry a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

The indictment also charges LEIGH-JAMES with four of possession with intent to distribute, and distribution of, methamphetamine, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the firearm offense, LEIGH-JAMES faces a mandatory consecutive term of imprisonment of five years.

LEIGH-JAMES has been detained since his arrest.

This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Fairfield Police Department.  The Task Force includes personnel from the DEA, Connecticut State Police, Norwalk Police Department, Stamford Police Department, Stratford Police Department and Milford Police Department.  The case is being prosecuted Assistant U.S. Attorney Amy C. Brown.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD GAINES, also known as “Stretch” and “Shorty,” 35, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for participating in a drug robbery scheme.

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, during the operation, an undercover agent and a confidential informant made several controlled purchases of suspected crack cocaine from GAINES.  During their contact, the informant asked GAINES if he and anyone he knew would be interested in committing a drug robbery.  GAINES stated that he did not want to participate in the robbery itself, but introduced the informant and the undercover agent to Harold Harrington, also known as “Chopper” and “Chapo.”  The undercover agent told Harrington that he wanted to hire someone to commit a home invasion robbery of a drug organization’s “stash house” in order to steal six to eight kilograms of cocaine.  Harrington agreed to participate and helped plan the robbery, which would include the use of firearms.  Harrington also stated that he would bring members of his crew to help commit the robbery.

The undercover agent and Harrington agreed to split the cocaine taken during the robbery, and they agreed to give GAINES one kilogram of the drug for putting the two individuals together.

On March 21, 2014, the day of the proposed robbery, Harrington arrived at the meeting location with Louis Toler, also known as “A.B.”  After Harrington, Toler and the undercover agent had a detailed discussion about how the robbery was going to be carried out, Harrington and Toler were arrested.  A subsequent search of Toler’s car revealed a loaded firearm.

The informant then called GAINES, told him the robbery had gone smoothly and arranged to meet him to deliver the cocaine.  When GAINES arrived at the designated location, he identified the law enforcement surveillance and drove off at a high rate of speed.  After a short chase, GAINES crashed his car on an off ramp in West Haven, attempted to flee on foot and was apprehended.

GAINES has been detained since his arrest.  On May 5, 2015, he pleaded guilty to one count conspiracy to interfere with commerce by robbery.

Harrington pleaded guilty to one count of conspiracy to interfere with commerce by robbery and, on November 3, 2015, was sentenced to 72 months of imprisonment.  Toler pleaded guilty to one count of possession of a firearm by a convicted felon and, on November 4, 2015, was sentenced to 77 months of imprisonment.

This case was prosecuted by Assistant U.S. Attorneys Tracy Dayton and Robert Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW GOLDREICH, 46, of East Lyme, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to two years of probation, including three months of home confinement, for producing and disseminating false advertisements for mortgage modification services.  Chief Judge Hall also ordered GOLDREICH to pay a $100,000 fine and $75,794 in restitution.

According to court documents and statements made in court, in March 2009, the U.S. Department of the Treasury created the Home Affordable Modification Program (“HAMP”), which consisted of a number of incentives to encourage struggling homeowners and financial institutions to modify existing loans on owner-occupied primary residences in order to help keep these properties out of foreclosure.

Between approximately May 2009 and February 2013, GOLDREICH used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by GOLDREICH.  The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications.  Many of the advertisements also falsely depicted NMHC as affiliated with the federal government, including through references to government stimulus programs and the use of President Barack Obama’s image.  One advertisement that aired in 2010 stated:  “Attention homeowners.  We know it’s tough out there.  And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.”  The same advertisement also stated:  “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half.  Our trained specialists know all the new regulations to get you quick relief.  We help thousands of homeowners every day.”

The advertisements included toll-free telephone numbers for mortgage borrowers to call for help modifying their mortgages.  In truth, NMHC did not provide mortgage modification services for any homeowners, and operated only as a front.  Homeowners who called the toll-free telephone numbers advertised by NMHC were routed to National Media Connection’s clients.  The clients, in turn, paid National Media Connection for these “leads.”  Under the pretense of helping homeowners modify their mortgages, certain National Media Connection clients then charged the homeowners fees and provided no services whatsoever in return.

As a result of the advertisements, several struggling homeowners across the United States were defrauded by unscrupulous clients of GOLDREICH’s media company, and some are in danger of losing their homes.

On August 13, 2015, GOLDREICH pleaded guilty to one count of false advertising.

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, announced that JERROD HALL, also known as “Slime,” 22, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months and one day of imprisonment, followed by one year of supervised release, for his role in a crack cocaine trafficking ring.

According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of Westhell street gang, and gang-related violent activity.  The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the Westhell street gang who, along with his associates distributed crack cocaine in the Westland Street area of Hartford.  HALL was intercepted over wiretaps engaging in conversations related to the distribution of crack cocaine.

At the time of this offense, HALL was released on a state bond based on his arrest in July 2011 for carrying a pistol without a permit, second degree burglary and interfering/resisting arrest.  In October 2011, HALL was shot in the vicinity of 129 Barbour Street in Hartford.

On April 1, 2015, HALL pleaded guilty to one count of using a telephone to facilitate a narcotics trafficking offense.

HALL was arrested on April 30, 2014, and had been released on bond.  At the conclusion of today’s court proceeding, he was remanded to begin serving his sentence.

Twenty-five individuals were charged as a result of the investigation.  Scott and 22 other defendants pleaded guilty to various offenses.  One defendant was shot and killed while his case was pending.  Scott awaits sentencing.

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

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON TORRANCE, 44, of East Haddam, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 20 months of imprisonment, followed by three years of supervised release, for engaging in a fraud scheme.

 According to court documents and statements made in court, between approximately March 2008 and August 2012, TORRANCE and Adam Meyers devised a scheme to defraud their employers by arranging for payment on goods that never shipped and instead diverting those payments to themselves.  TORRANCE worked out of the New Haven branch of a New Jersey-based electrical and industrial supply company (“Distributor-1”), and Meyers was a project manager for a New Britain-based electrical subcontractor (“Contractor”) that frequently purchased supplies from Distributor-1.  In addition, Daniel Wall operated Bob Wall and Associates, a Cheshire-based distributor of electrical and other related equipment.

As part of the scheme, Meyers identified to TORRANCE projects on which he believed the profit margin for Contractor would permit them to divert excess profits to themselves without Contractor becoming aware.  Meyers would submit a purchase order for materials to TORRANCE.  TORRANCE then submitted a purchase order to Wall for the goods listed on the purchase order sent by Meyers.  Wall then submitted an invoice to Distributor-1 for the materials listed on the purchase order, and Distributor-1 paid the invoice by mailing a check to Bob Wall and Associates.  Distributor-1 then invoiced Contractor for the goods that were on the purchase order and Contractor issued a check to Distributor-1.  Wall then hand-delivered a business check to TORRANCE for approximately 90 percent of the money that had been paid by Distributor-1 to Bob Wall and Associates, and Wall retained the remaining 10 percent as his share of the proceeds from the scheme.  TORRANCE then paid out a portion of the proceeds of the scheme to Meyers.

At no time did any product on the purchase orders actually ship to the customer.

The victim companies lost more than $600,000 as a result of this scheme.

On February 23, 2015, TORRANCE and Meyers each pleaded guilty to one count of conspiracy to commit mail fraud.  On July 15, 2015, Wall pleaded guilty to one count of misprision of a felony.  On October 30, 2015, Meyers, 44, of Southbury, was sentenced to 18 months of imprisonment, followed by three years of supervised release, and Wall, 59, of Bridgeport, was sentenced to three years of probation, the first 12 months of which he must serve in home confinement.

Restitution will be determined after additional court proceedings.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys David E. Novick and William J. Nardini.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LOUIS TOLER, also known as “A.B.,” 46, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 77 months of imprisonment, followed by three years of supervised release, for participating in a drug robbery scheme.

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, during the operation, an undercover agent and a confidential informant made several controlled purchases of suspected crack cocaine from Donald Gaines, also known as “Stretch” and “Shorty,” of New Haven.  During their contact, the informant asked Gaines if he and anyone he knew would be interested in committing a drug robbery.  Gaines stated that he did not want to participate in the robbery itself, but introduced the informant and the undercover agent to Harold Harrington, also known as “Chopper” and “Chapo.”  The undercover agent told Harrington that he wanted to hire someone to commit a home invasion robbery of a drug organization’s “stash house” in order to steal six to eight kilograms of cocaine.  Harrington agreed to participate and helped plan the robbery, which would include the use of firearms.  Harrington also stated that he would bring members of his crew to help commit the robbery.

The undercover agent and Harrington agreed to split the cocaine taken during the robbery, and they agreed to give Gaines one kilogram of the drug for putting the two individuals together.

On March 21, 2014, the day of the proposed robbery, Harrington arrived at the meeting location with TOLER.  After TOLER, Harrington, and the undercover agent had a detailed discussion about how the robbery was going to be carried out, TOLER and Harrington were arrested.  A subsequent search of TOLER’s car revealed a loaded firearm.

The informant then called Gaines, told him the robbery had gone smoothly and arranged to meet him to deliver the cocaine.  When Gaines arrived at the designated location, he identified the law enforcement surveillance and drove off at a high rate of speed.  After a short chase, Gaines crashed his car on an off ramp in West Haven, attempted to flee on foot and was apprehended.

TOLER has been detained since his arrest.  On May 1, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.

TOLER’s criminal history includes approximately 29 misdemeanor and felony convictions, including convictions for assault, threatening, burglary, sale of narcotics and unlawful possession of a weapon.

Gaines and Harrington each previously pleaded guilty to one count of conspiracy to interfere with commerce by robbery.  On November 3, 2015, Harrington was sentenced to 72 months of imprisonment.  Gaines awaits sentencing.

This case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Robert Spector.

United States Attorney Deirdre M. Daly, representatives from federal, state and local law enforcement, and social service agencies today announced the formation of the Connecticut Human Trafficking Task Force to combat commercial sexual and labor exploitation in Connecticut.

This Human Trafficking Task Force includes representatives from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Department of Labor, the Connecticut State Police and police departments from 14 cities and towns across Connecticut, including Bridgeport, East Hartford, Greenwich, Hamden, Hartford, Milford, Naugatuck, New Haven, Norwalk, Stamford, Stratford, Waterbury, West Haven and Windsor Locks.  Additional police departments have been or will be invited to participate and are also expected to join the Task Force.

Committed to a victim-centered model, the Task Force will partner with social service agencies and organizations, including the Connecticut Department of Children and Families and the International Institute of Connecticut, which help to identify and report suspected trafficking and then provide needed support for trafficking victims.

“Over the last several years, it has become increasingly clear that human trafficking, and particularly the sex trafficking of minors – the cruel victimization of defenseless young women and men – is a form of modern day slavery,” said U.S. Attorney Daly.  “Despite the best efforts of law enforcement, this criminal activity grows apace with the proliferation of Internet marketplaces where sex with children can be bought and sold.  This task force dramatically expands our resources by bringing together a broad group of trained and dedicated federal, state and local law enforcement authorities that will operate across jurisdictional boundaries throughout Connecticut. We are proud to be working collaboratively with the Department of Children and Families and the International Institute of Connecticut as these organizations provide critical support by identifying victims of these terrible crimes and giving them the support that they so desperately need.”

U.S. Attorney Daly noted that, in recent years, the U.S. Attorney’s Office for the District of Connecticut has prosecuted more than 20 individuals for sex trafficking offenses, most of which involved minor victims.  On Monday of this week, defendant Edward Thomas was sentenced to 210 months of imprisonment for trafficking 16 and 17 year-old girls in Milford and Windsor Locks.  Yesterday, a federal grand jury in New Haven returned an indictment charging Jordan Anate of New York with sex trafficking of a minor for more than four months in Connecticut and elsewhere.

The Task Force will be coordinated by Assistant U.S. Attorneys David Novick and Sarala Nagala who will lead monthly meetings with task force members to discuss investigatory leads and case developments. In December 2015, Homeland Security Investigations (HSI) will conduct a three-day training for a large group of police officers from participating departments and troopers from the Connecticut State Police.  Law enforcement officers who complete the training will be deputized as federal task force officers.

“Close collaboration between federal, state, local and NGO partners is the most effective way to tackle the issues of human trafficking involving forced labor and the sex trade,” said Special Agent in Charge Matthew Etre of HSI Boston.  “HSI’s victim-centered approach brings a unique perspective to the table that will blend well with the talented and resourceful people from our partner law enforcement agencies and local NGOs.  Working together to go after the criminal element that preys on victims who are unable or unprepared to defend themselves is at the forefront of our public safety initiatives at HSI.”

“The FBI is proud to work alongside our local, state and federal partners, and today’s announcement of this joint Task Force should serve as a warning to all who participate in the depravity and exploitation of human beings for profit, that such behavior will be vigorously investigated by a group focused on their specific types of criminal behavior,” said FBI Special Agent in Charge Patricia M. Ferrick.  “We intend to use every resource available to seek out and shut down those responsible for human trafficking in and around Connecticut.”

In October, the FBI and law enforcement partners conducted its ninth “Operation Cross Country,” a nationwide law enforcement action focusing on underage victims of prostitution.  The most recent operation resulted in the recovery of 149 sexually exploited children and the arrests of more than 150 pimps and other individuals.

“The most important thing the Department has learned in the last four years fighting Domestic Minor Sex Trafficking is the need to coordinate our efforts with all the partners we possibly can to ensure that we are being our most effective,” said Department of Children and Families Commissioner Joette Katz.  “That is why we have worked with thousands of law enforcement officials – from the FBI to local police departments around Connecticut – as well as medical, clinical and education professionals to make sure we are all informed and working together.  This task force will be another big step forward in realizing such an effective partnership.”

“We are pleased to be partnering with law enforcement here in Connecticut as part of the U.S. Attorney’s Office’s Human Trafficking Task Force,” said Alicia Kinsman of the International Institute of Connecticut.  “For nearly 10 years, the International Institute of Connecticut has worked to protect victims and is committed to eradicating human trafficking in our state.  It is a horrendous crime; one that exploits vulnerable populations and deprives them of their rights and freedom.  But with statewide coordination of law enforcement and victim service efforts, we know that here in Connecticut, we have the power to stop it.”

“The collaborative approach of the Task Force balances society’s need to ensure that justice is done for these despicable crimes, while at the same time meeting the needs of victims, who in far too many of these cases are only children,” said U.S. Attorney Daly.

U.S. Attorney Daly encouraged trafficking victims, and anyone who comes in contact with potential victims of trafficking, to call the National Human Trafficking Resource Center Hotline at 888-373-7888.  The hotline is run by the Polaris Project under a federal grant.  Hotline operators are trained to identify potential trafficking situations, and will immediately refer tips to law enforcement.  Individuals can also send an email to NHTRC@traffickingresourcecenter.org.

Trafficking victims also are encouraged to text “BEFREE” to receive an immediate response and help from the National Human Trafficking Resource Center.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, announced that DR. JOHN KATSETOS, 53, of Fairfield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 84 months of imprisonment, followed by three years of supervised release, for illegally dispensing oxycodone and other controlled substances well outside of the scope of accepted medical practice, and for defrauding government healthcare programs.

“Dr. Katsetos repeatedly violated his oath to protect his patients from harm,” said U.S. Attorney Daly.  “He flooded our community with highly addictive controlled substances authorizing more than 2 million dosage units to more than 2000 patients.  His criminal conduct, which included ignoring the warnings of a doctor and pharmacists that certain patients clearly showed signs of addiction, caused dozens of his own patients to fall prey to opioid addiction.  At least one his former patients, who traveled approximately 180 miles from her home in New York to receive prescriptions from Dr. Katsetos, tragically died of an overdose.  This long prison term appropriately reflects the devastating harm he has caused.  The sentence will protect the community from this defendant and hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.”

“The DEA is committed to investigating and bringing to justice those who divert and traffic oxycodone,” said DEA Special Agent in Charge Michael J. Ferguson.  “Opiate abuse is a major problem in Connecticut and throughout New England.  The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is a gateway to heroin addiction and is devastating our communities.  This investigation demonstrates the strength of collaborative law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone that illicitly distributes these drugs.”

According to court documents and statements made in court, KATSETOS practiced medicine for more than 20 years, most recently out of offices located at 90 Morgan Street in Stamford and 353 Bridgeport Avenue in Milford.  The investigation, which included the use of undercover law enforcement personnel, revealed that KATSETOS failed to perform rudimentary examinations of patients to justify the controlled substances he prescribed, and that he had been warned by a doctor and several pharmacists, some of whom stopped filling his prescriptions, that he should stop prescribing oxycodone and other narcotic pain medications to certain patients who showed obvious signs of addiction.  KATSETOS ignored the warnings and continued to prescribe controlled substances, including oxycodone, to these patients outside of the usual course of professional practice and not for a legitimate medical purpose.

The investigation further revealed that KATSETOS’s 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.

From November 2011 to October 2013, KATSETOS authorized more than 2 million dosage units of Schedule II through IV controlled substances to more than 2000 patients.  This placed him as the eighth highest prescriber of such controlled substances in Connecticut – a list that includes hospitals.  He was the highest-ranked general practitioner on the list.

KATSETOS also saw multiple patients at once and billed Medicare and Medicaid for individual visits for each of those patients.

“We expect doctors to be part of the solution to America's prescription drug fraud epidemic -- not part of the problem,” said Special Agent in Charge Phillip Coyne, U.S. Department of Health and Human Services, Office of Inspector General.  “Dr. Katsetos violated the fundamental trust that taxpayers and patients extend to healthcare professionals.  This sentencing should serve as a warning to those who would abuse their positions for personal gain.”

On May 1, 2015, KATSETOS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute narcotics, and one count of health care fraud.

As part of the sentence, Judge Bryant ordered KATSETOS to pay $497,789 in restitution, and to forfeit $550,000, which represents the value of his medical practice.

KATSETOS was arrested on July 1, 2014, and has been released on a $1 million bond.  At the conclusion of today’s court proceeding, he was remanded to begin serving his sentence.

This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Office of Inspector General of the U.S. Department of Health and Human Services, with the assistance of the State of Connecticut Department of Consumer Protection Drug Control Division, and several local police departments.  The case was prosecuted by Assistant U.S. Attorneys Rahul Kale and Alina Reynolds.

U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling 1-800-HHS-TIPS.

U.S. Attorney Deirdre M. Daly today announced new supervisory appointments within the U.S. Attorney’s Office.

Assistant U.S. Attorney Tracy Lee Dayton has been appointed Executive Assistant U.S. Attorney.  Ms. Dayton joined the U.S. Attorney’s Office in 2007 and has served as Chief of the Violent Crimes and Narcotics Unit and as Senior Litigation Counsel.  Since 2012, she has been a member of the Attorney General’s Review Committee on Capital Crimes.  She previously served as an Assistant U.S. Attorney in the Eastern District of New York, and as a Deputy District Attorney in Los Angeles County.  Ms. Dayton graduated from Princeton University in 1992 and UC Berkeley School of Law in 1995.

Assistant U.S. Attorney David E. Novick has been named Chief of the Criminal Division’s Financial Fraud and Public Corruption Unit, which focuses on the investigation and prosecution of securities, commodities and investor fraud, public corruption, bank fraud and embezzlement, mortgage fraud, tax fraud, health care fraud, bankruptcy fraud and Foreign Corrupt Practices Act violations.  He previously served as a Deputy Chief of the FFPC Unit.  Mr. Novick joined the Office in 2008 after serving as an Assistant District Attorney in the Manhattan District Attorney’s Office for approximately five years.  He is a 1997 graduate of Yale University and a 2003 graduate of New York University School of Law.

Assistant U.S. Attorney Sarah P. Karwan has been named a Deputy Chief of the FFPC Unit.  Prior to joining the Office in 2007, Ms. Karwan was in private practice for six years, and served as a law clerk to Chief U.S. District Judge Alfred V. Covello.  She is a 1997 graduate of the College of William and Mary and a 2000 graduate of the UConn School of Law.

Assistant U.S. Attorney Liam Brennan of the FFPC Unit has been asked to lead the Connecticut Public Corruption Task Force, which investigates corrupt public officials, the misuse of public funds and related criminal activity.  Mr. Brennan joined the Justice Department’s Fraud Section in Washington, D.C. in 2007, and moved to the U.S. Attorney’s Office in 2011.  He graduated from the University of Notre Dame in 2001 and Yale Law School in 2007.

Assistant U.S. Attorney Jacabed Rodriguez-Coss has been appointed a Deputy Chief of the Criminal Division’s National Security and Major Crimes Unit, which is responsible for prosecuting matters involving international and domestic terrorism, civil rights and hate crimes, human trafficking and child exploitation, cybercrime and identity theft, organized crime, immigration and customs enforcement, government program and defense contractor fraud, and environmental crimes.  Prior to joining the Office in 2014, Ms. Rodriguez-Coss was an Assistant U.S. Attorney in both the District of Maryland and the District of Puerto Rico, and served as a trial attorney in the Capital Case Section of the Justice Department’s Criminal Division.  She graduated from Yale University in 1988 and Harvard Law School in 1991.

 “Our office is fortunate to have many experienced and talented attorneys dedicated to keeping our communities safe, enforcing federal laws fairly and consistently, and representing the interests of the United States in court,” said U.S. Attorney Daly.  “The AUSAs stepping into these supervisory roles are highly qualified and possess the skills and qualities to be effective and respected leaders.  I am honored to work side by side these men and women as well as all the members of our supervisory team.”

The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation.  The Office is composed of approximately 65 Assistant U.S. Attorneys and approximately 50 staff members at offices in New Haven, Hartford and Bridgeport.

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