Conn. man nabbed on federal charges for bad app.

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Apparently, there wasn’t an app. for that. Federal agents say a Middletown man was offering friends a chance to get in on the ground floor of his new tech business, but instead he was just grinding up their money. Jonathan Gracia, 24, waived his right to indictment in New Haven federal court and pleaded guilty […] [Read More]
Categories: Fraud

Banks pay $7 million for bad behavior in 4,670 Connecticut foreclosures

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Remember when the banks faked court documents to speed up the foreclosure process and kept losing the paperwork from desperate people trying to modify mortgages in the heart of the downturn? Well, the checks are finally in the mail paying 5,000 residents in the state $1,480 each for their troubles thanks to Attorney General George […] [Read More]

Stamford, Bridgeport, Norwalk and SHU get UBS checks

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UBS AG has issued $541,000 in restitution checks to 10 Connecticut bond issuers who were affected by an alleged bid rigging scheme, according to Attorney General George Jepsen. UBS settled the allegations it steered clients into bad contracts for municipal bond derivatives with 24 states, agreeing to pay $90.8 million in restitution and fines. The […] [Read More]
Categories: Banking, Fraud

Raj Rajaratnam’s little brother charged with insider trading

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With his brother Raj Rajaratnam already sitting in a federal penitentiary for insider trading, his little brother Rengan Rajaratnam is now facing similar charges. The U.S. Securities and Exchange Commission announced Thursday it is bringing charges against the younger Rajaratnam, who regulators say was tipped off by his brother, a one-time Greenwich resident and the […] [Read More]

Entrenched in underground economy, man goes to jail

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This item from Justice came out Monday. It’s another example of the law unearthing underground economic activity. One of the contributing factors to the decline in the state’s labor force in the last year is that people working for cash to avoid taxes are not counted in the monthly jobs report. As a result the […] [Read More]

Car breakdown leads to 41 months in jail for hedge fund CFO

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Darrin Foster formerly of the Bronx, spent six years using a Westport hedge fund as his personal piggy bank and two years on the lamb from law enforcement, will head to jail to serve 41 months for embezzlement. Foster, a former CFO of a Westport hege fund, was sentenced Thursday by U.S. District Judge Janet […] [Read More]

State snatching tax refunds from ‘unemployed’ chiselers

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The Connecticut Labor Department said this week a new program aimed at recovering money from people who were cashing unemployment benefits checks while employed has intercepted $2.66 million in federal tax refunds. Overall, the Department said it recovered $4.6 million in fraudulently cashed unemployment checks from 5,000 people in February. “No one wants to see […] [Read More]

Ridgefield-based hedge fund executives indicted

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David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced Tuesday a federal grand jury sitting in New Haven returned a 19-count indictment charging three executives of New Stream Capital, LLC, a Ridgefield-based hedge […] [Read More]
Categories: Fraud, Hedge Funds

Newtown man cops to $2.5 million “friends and family” fraud

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The U.S. Attorney for the District of Connecticut said Thursday Garrett L. Denniston, 62, formerly of Newtown and Maine, pleaded guilty in federal court to wire fraud related to a seven-year fraud that took 50 people for $2.5 million. “This defendant operated an investment fraud scheme by representing to investors that he ran a successful […] [Read More]
Categories: Fraud

SEC shuts down a different kind of green investment

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The U.S. Securities and Exchange Commission brought charges and an asset freeze Friday against an Illinois man and two companies behind an an alleged fraudulent investment scheme targeting foreign investors seeking profitable returns and a legal path to U.S. residency through a federal visa program. The SEC alleges that Anshoo R. Sethi created A Chicago […] [Read More]
Categories: Fraud
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