Category: USDJ National Center for Disaster Fraud

Source: United States Department of Justice (National Center for Disaster Fraud)

NEW ORLEANS – United States Attorney Duane A. Evans announced that DEAN MEILLEUR (“MEILLEUR”), age 57, a resident of Slidell, Louisiana, was sentenced on September 17, 2024, for making or using false writings or documents to the United States Small Business Administration (SBA), in violation of Title 18, United States Code, Section 1001(a)(3).

According to court documents, MEILLEUR, submitted false writings and documents to the SBA to obtain Economic Impact Disaster Loans (“EIDL”).  In his EIDL applications, among other things, MEILLEUR falsely represented that he was the owner of a trucking business  formed in 2017 and, that he was eligible for EIDL funds.  As a result of these false submissions, MEILLEUR obtained $147,400 from the SBA to which he was not entitled. 

United States District Judge Brandon S. Long sentenced MEILLEUR to four (4) years of probation, payment of restitution in the amount of $147,400.00, and a $100 mandatory special assessment fee. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

U.S. Attorney Evans commended  the Federal Bureau of Investigation for investigating this matter.  Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.

Source: United States Department of Justice (National Center for Disaster Fraud)

HOUSTON – A 34-year-old former Houston resident has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

From March 2020 until March 2021, Cora Chantail Custard conspired with others to submit false and fraudulent loan applications for financial assistance both personally and on behalf of others.

The co-conspirators submitted false applications to the Small Business Administration (SBA), Federal Emergency Management Agency (FEMA) and multiple state unemployment insurance agencies.

Over the course of the conspiracy, Custard resided in both Houston and San Antonio.

As part of her plea, Custard admitted to using her Facebook account to advertise her services to file fraudulent disaster relief applications. Custard’s posts repeatedly described the scheme to her social media followers as “doing apps,” with the ability to obtain between $6,000 and $8,000 for an application within four to seven days of filing.

Custard submitted or caused the submission of over 100 fraudulent Economic Injury Disaster Loan applications, at least 36 of which resulted in advance payments totaling $345,000.

Further investigation revealed Custard filed at least 30 fraudulent FEMA Disaster Benefit applications related to Hurricane Laura in August 2020 and Hurricane Sally in September 2020. At least 16 of those fraudulent applications resulted payouts totaling approximately $75,000.

Additionally, Custard committed several other fraudulent acts like filing over 100 false unemployment insurance applications in Michigan, Illinois and several other states for her own and others’ benefits. At least 20 of those fraudulent applications resulted in payments totaling approximately $200,000.

Due to her actions, multiple agencies lost a total of $620,000.

U.S. District Judge David Hittner will impose sentencing in January 2025. At that time, Custard faces up to five years in federal prison and a possible $250,000 maximum fine.

She was permitted to remain on bond pending that hearing.

The Department of Homeland Security-Office of Inspector General (OIG), IRS-Criminal Investigation, Treasury Inspector General for Tax Administration, Social Security Administration-OIG, SBA-OIG and Department of Labor-OIG conducted the investigation.

Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.

Source: United States Department of Justice (National Center for Disaster Fraud)

Tampa, FL – United States Attorney Roger B. Handberg announces that Miles Partnership, LLC (Miles), a travel and tourism consulting company headquartered in Sarasota, Florida, has agreed to a civil settlement of $2,281,950 to resolve allegations that Miles improperly obtained and received forgiveness of a loan under the Paycheck Protection Program (PPP).

Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications. The PPP was administered by the U.S. Small Business Administration (SBA). Under the PPP rules and regulations then in effect, companies that were required to file a registration statement under the Foreign Agents Registration Act (FARA) were not eligible for a PPP loan. 

GNGH2, Inc. filed a qui tam complaint in the Middle District of Florida alleging that Miles improperly obtained a second draw PPP loan for $2 million. According to the allegations in the complaint, Miles was required to file a registration statement under FARA due to its work with various foreign tourism boards. The United States investigated GNGH2’s allegations with the cooperation of Miles. The civil settlement will conclude the lawsuit filed by GNGH2 and GNGH2 will receive $207,450 as a share in the recovery.

“The United States Attorney’s Office is committed to investigating and holding responsible those applicants who improperly obtained loans under the PPP program,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to seek civil redress and, where appropriate, criminally prosecute those individuals and entities that obtained PPP loans to which they were not entitled.”

SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, other federal law enforcement agencies, as well as private individuals who uncover borrower misconduct to recover the lending program’s damages as well as penalties.”

The investigation was handled by Assistant U.S. Attorney Christopher J. Emden, with assistance from the Small Business Administration – Office of General Counsel. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Source: United States Department of Justice (National Center for Disaster Fraud)

Stole Over $2.7 million from King County rental assistance program designed to give emergency help to renters facing eviction

Source: United States Department of Justice (National Center for Disaster Fraud)

Atlanta, Georgia – The United States Court of Appeals for the Eleventh Circuit in Atlanta has affirmed the convictions and sentence of Casey David Crowther (37, Fort Myers) in one of the first federal appeals involving a fraudulent COVID-relief loan (11th Cir. Case No. 21-12255). In March 2021, a federal jury in Fort Myers had found Crowther guilty of bank fraud, making a false statement to a lending institution, and two counts of money laundering in connection with his Paycheck Protection Program loan scheme. (Before trial, Crowther had pleaded guilty to other bank-fraud and false-statement charges related to a separate scheme in which Crowther had created fake bank statements to justify a loan for a nearly $1.3 million waterfront house in St. James City, Florida.) United States District Judge John E. Steele sentenced Crowther to 37 months in prison and three years of supervised release. Crowther appealed his convictions on the PPP charges and his sentence. Among other things, he argued that he was permitted to use PPP funds for any purpose—notwithstanding unambiguous restrictions in the loan documents that he signed—so long as he intended to repay the loan. The Eleventh Circuit rejected Crowther’s arguments and affirmed his convictions and sentence. 

Congress created the Paycheck Protection Program to facilitate up to $349 billion in low-interest, potentially forgivable loans for qualified businesses struggling to make payroll or pay operating expenses in the early days of the COVID-19 pandemic. PPP loans were provided by private lenders and guaranteed by the Small Business Association and could be used only for payroll and certain other expenses necessary to maintain business operations during the pandemic (primarily payroll). In April 2020, Crowther obtained a $2.1 million PPP loan by stating that he intended to use the money for payroll, rent, and utilities for his company, Target Roofing and Sheet Metal, Inc. According to the evidence presented at trial, he instructed his bank to deposit the funds into a secret account separate from his company’s main operating account. He quickly used the account for personal use, spending nearly $700,000 on a 40-foot pleasure boat and $55,000 on a horse. He also used PPP funds to pay down personal credit-card debt, a loan owed to an old business partner, and his company’s line of credit (which were not permitted uses). When Crowther’s bank warned him that he was likely to be audited, he attempted to conceal his fraud by falsely “hiring” family members and dozens of fictitious employees to inflate his company’s apparent payroll. He hid the true purpose of certain wire transfers (saying that the boat payment was an “equipment purchase” and the horse payment was for “roofing material”). All the while, taxpayers continued to fund the low-interest loan that had been intended to protect Crowther’s business and employees.

This case was investigated by the United States Secret Service. It was prosecuted in U.S. District Court by Assistant United States Attorneys Trent Reichling and Michael V. Leeman. The appeal was handled by Assistant United States Attorney Sean Siekkinen.

Source: United States Department of Justice (National Center for Disaster Fraud)

PITTSBURGH, PA – A former resident of New Kensington, PA, pleaded guilty in federal court to charges of Conspiracy to Commit Fraud and Fraud in Connection with Emergency Benefits, Acting United States Attorney Troy Rivetti announced today.

Nathan Woods, 24, currently incarcerated in Allegheny County Jail pleaded guilty to 2 counts before Senior United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that from in and around June 2020, and continuing thereafter until in and around July 2020, in the Western District of Pennsylvania, Woods knowingly and willfully did conspire to commit fraud in connection with emergency benefits, more specifically, fraud related to pandemic unemployment benefits.

Following the guilty plea today, Judge Schwab sentenced Woods to time-served. He was also ordered to pay restitution in the amount of $11,910 to the Pennsylvania Department of Labor, jointly and severally with conspirator Erick Woods.

Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Woods.

Source: United States Department of Justice (National Center for Disaster Fraud)

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL DiMASSA, 32, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 27 months of imprisonment, followed five years of supervised release, for his involvement in schemes that resulted in the theft of more than $1.2 million dollars in COVID relief funds and other funds from the City of West Haven.  Judge Williams also ordered DiMassa to perform 100 hours of community service while on supervised release.

According to court documents and statements made in court, DiMassa was a Connecticut State Representative who was also employed by the City of West Haven, most recently serving as the Administrative Assistant to the City Council.  In April 2020, the State of Connecticut was allocated money by the U.S. Department of the Treasury through the Coronavirus Relief Fund (“CRF”), which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for the purpose of helping local governments pay costs incurred in responding to the COVID-19 pandemic.  From July 2020 through September 2021, the City of West Haven received approximately $1,150,257 in financial assistance from this fund.  DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with others to steal these funds and other West Haven funds through the submission of fraudulent invoices, and subsequent payment, for COVID relief goods and services that were never provided.

In one scheme, DiMassa conspired with John Bernardo, who was employed by the City of West Haven as a Housing Specialist in the office of Community Development Administration.  In January 2021, DiMassa and Bernardo formed Compass Investment Group, LLC.  Beginning in February 2021, Compass Investment Group LLC fraudulently billed the City of West Haven and its “COVID-19 Grant Department” for consulting services purportedly provided to the West Haven Health Department that were not performed.  From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70.  DiMassa made several large cash withdrawals from the Compass Investment Group LLC bank account, some of which were made shortly before or after he made a large cash “buy-in” of gaming chips at the Mohegan Sun Casino.

DiMassa also conspired with his now wife, Lauren DiMassa, formerly known as Lauren Knox, through the submission of numerous fraudulent invoices to West Haven for services related to a Youth Violence Prevention Program and for Youth Violence COVID-19 Associated Expenses.  These invoices listed charges for in-home counseling, cleaning supplies, special needs hourly service, wi-fi assistance for low/moderate income families, counseling services, license fees, a fall youth clinic, meals, support group supplies, equipment rental, and youth clinic support group.  West Haven made at least 16 payments totaling approximately $147,776.10 to Lauren DiMassa, who never provided any services to the City of West Haven.

In a third scheme, DiMassa conspired with John Trasacco, of West Haven, through the submission of fraudulent invoices from L & H Company and JIL Sanitation Services, two companies controlled by Trasacco, to West Haven for goods and services, including thousands of units of Personal Protective Equipment (PPE), HVAC maintenance at multiple municipal locations, COVID supplies for the Board of Education, and cleaning services for various municipal and school buildings, including one school building that had been vacant and abandoned for several years.  Trasacco’s companies received approximately $431,982 through this scheme.

Judge Williams ordered Michael DiMassa to pay $856,844.45 in restitution.

Judge Williams noted the sentence takes into account extensive testimony DiMassa provided during Trasacco’s trial.

DiMassa was arrested on October 20, 2021.  On November 1, 2022, he pleaded guilty to three counts of conspiracy to commit wire fraud.

DiMassa, who is released on a $250,000 bond, is required to report to prison on July 31.

On June 14, 2022, Bernardo pleaded guilty to one count of conspiracy to commit wire fraud.  On March 22, 2023, he was sentenced to 13 months of imprisonment and ordered to pay $58,927.25 in restitution.

On July 14, 2022, Lauren DiMassa pleaded guilty to one count of conspiracy to commit wire fraud.  On March 23, 2023, she was sentenced to six months of imprisonment and ordered to pay $147,776 in restitution.

On December 2, 2022, a jury found Trasacco guilty of one count of conspiracy to commit wire fraud and one count of wire fraud.  On April 3, 2023, he was sentenced to 96 months of imprisonment and ordered to pay $143,994 in restitution.

This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations.  The case was prosecuted by Assistant U.S. Attorneys Ray Miller and David Sheldon.

Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Source: United States Department of Justice (National Center for Disaster Fraud)

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Marisa Beck, age 40, of Spokane, pled guilty to fraudulently obtaining more than $360,000 in COVID-19 relief funding intended for endangered small businesses.  United States District Judge Mary K. Dimke accepted Ms. Beck’s guilty plea and set sentencing for September 27, 2023, at 11 a.m., in Spokane.  This conviction is the eighth felony conviction announced by the Eastern Washington COVID-19 Fraud Strike Force, which launched in 2022.   

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses.  One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic.  Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic. 

“COVID-19 relief programs quickly ran out of money due to the number of businesses that requested funding, meaning that struggling, deserving small businesses were not able to obtain critically needed funding to keep their businesses afloat during the shutdowns and disruptions caused by the COVID pandemic,” said U.S. Attorney Waldref.  “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs.  The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.” 

In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security (DHS) OIG, Department of Labor OIG, Air Force Office of Special Investigations, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments and convictions, and have recovered millions of dollars in penalties and restitution for the public. 

In the plea agreement accepted by the court, and in information disclosed during court proceedings, Ms. Beck admitted to fraudulently obtaining $368,829 in PPP and EIDL funding for three purported businesses: Cyra Solar LLC, Beck N’ Call Landscape, LLC, and Value in People Consulting, LLC. Ms. Beck admitted that these entities were not eligible for CARES Act funding because Beck N’ Call Landscape and Cyra Solar were not active businesses as of February 2020, and because she submitted false and fraudulent payroll, revenue, and other information associated with the three purported businesses in order to fraudulently obtain CARES Act funding. 

“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by VA OIG,” said U.S. Attorney Waldref.  “We will continue to work with our law enforcement partners to strengthen our communities by protecting our small and local businesses.” 

The charges to which Beck pled carries a maximum sentence of up to 5 years in federal prison.  The cases were investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by the U.S. Department of Veterans Affairs Office of Inspector General, Spokane Resident Office, with investigative assistance and support from the Federal Bureau of Investigation, Spokane Resident Agency, the Small Business Administration Office of Inspector General, Western Regional Office, and the Internal Revenue Service, Criminal Investigative Division, Seattle Field Office.  Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.  

Case No. 2:23-cr-00055-MKD

Source: United States Department of Justice (National Center for Disaster Fraud)

MIAMI – Gregory Dennis, 45, a former police officer with the City of Miami Police Department, has pled guilty to wire fraud in connection with two fraudulent applications for Paycheck Protection Program (PPP) loans he submitted to a Small Business Administration (SBA) approved PPP lender while he was still employed with the City of Miami Police Department.

On March 28, 2021, Dennis submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a cleaning service. The PPP loan application falsely represented his business’ 2020 gross income and in support of the application, he submitted a false and fraudulent IRS Form 1040, including a Schedule C, for tax year 2020. As a result of the false and fraudulent application, Dennis obtained a $20,833 PPP loan from a California-based SBA approved PPP lender. 

On April 10, 2021, Dennis submitted a second false and fraudulent PPP loan application, this time seeking a second draw PPP loan. Once again, Dennis claimed to be a sole proprietor operating a cleaning service, and this second draw application also fraudulently represented his business’ 2020 gross income. This second draw application also was supported by the same false and fraudulent 2020 IRS Form 1040 and Schedule C that was used to fraudulently obtain the first PPP loan. Again, the fraudulent application was approved successfully, and Dennis received an additional $20,833 in second draw PPP loan proceeds from the same California-based lender.

Dennis is scheduled for sentencing on June 13, at 1:15 p.m. before U.S. District Judge William P. Dimitrouleas in Fort Lauderdale, where he faces a possible maximum sentence of up to 20 years in prison.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Investigations Division’s Eastern Region, announced the guilty plea.

The FBI’s Miami Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. U.S. Attorney Lapointe thanked the City of Miami Police Department and the Miami-Dade County Office of Inspector General for their invaluable assistance with this case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60063.

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Source: United States Department of Justice (National Center for Disaster Fraud)

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN TRASACCO, 50, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 96 months of imprisonment, followed by five years of supervised release, for conspiracy and fraud offenses related to a scheme to steal COVID-19 relief funds from the City of West Haven.

According to the evidence presented during a trial in this matter, Michael DiMassa was a Connecticut State Representative who was also employed by the City of West Haven, most recently serving as the Administrative Assistant to the City Council.  In April 2020, the State of Connecticut was allocated money by the U.S. Department of the Treasury through the Coronavirus Relief Fund (“CRF”), which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for the purpose of helping local governments pay costs incurred in responding to the COVID-19 pandemic.  From July 2020 through September 2021, the City of West Haven received approximately $1,150,257 in financial assistance from this fund.  DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with others to steal these funds and other West Haven funds through the submission of fraudulent invoices, and subsequent payment, for COVID relief goods and services that were never provided.

The investigation revealed that DiMassa conspired with Trasacco through the submission of fraudulent invoices from L & H Company and JIL Sanitation Services, two companies controlled by Trasacco, to West Haven for goods and services, including thousands of units of Personal Protective Equipment (PPE), HVAC maintenance at multiple municipal locations, COVID supplies for the Board of Education, and cleaning services for various municipal and school buildings, including one school building that had been vacant and abandoned for several years.  Trasacco’s companies received approximately $431,982 through this scheme.

On December 2, 2022, a jury found Trasacco guilty of one count of conspiracy to commit wire fraud and one count of wire fraud.

Judge Williams ordered Trasacco to pay $143,994 in restitution.

Trasacco, who had been released on bond, was remanded to custody at the conclusion of today’s court proceeding.

On November 1, 2022, DiMassa pleaded guilty to three counts of conspiracy to commit wire fraud.  He is awaiting sentencing and has agreed to pay restitution of $1,216,541.80.

On June 14, 2022, John Bernardo, a West Haven city employee who with Michael DiMassa formed a company that they used to bill the city for fraudulent COVID-related consulting services, pleaded guilty to one count of conspiracy to commit wire fraud.  On March 22, 2023, he was sentenced to 13 months of imprisonment and ordered to pay $58,927.25 in restitution.

On July 14, 2022, Michal DiMassa’s wife, Lauren DiMassa, pleaded guilty to one count of conspiracy to commit wire fraud.  On March 23, 2023, she was sentenced to six months of imprisonment and ordered to pay $147,776 in restitution.

This matter has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations.  The case is being prosecuted by Assistant U.S. Attorneys Ray Miller and David Sheldon.

Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.