Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven has returned a 15-count Indictment charging a Connecticut real estate developer, his business associate and two of his companies with conspiracy, financial institution fraud, bank fraud, wire fraud and money laundering.

The Indictment alleges that RICHARD R. GIROUARD, 54, of Norwalk, Connecticut and Stuart, Florida, was a real estate developer and home builder in Connecticut.  GIROUARD operated GIROUARD ASSOCIATES, INC. (“GIROUARD ASSOCIATES”) and RICHARD GIROUARD ASSOCIATES, LLC (“RGA”), formerly located in New Canaan and now of Greenwich, Connecticut.  PAUL A. MAYOTTE was the Chief Financial Officer of GIROUARD ASSOCIATES and a business confidant of GIROUARD’s.

The Indictment alleges that GIROUARD and MAYOTTE, along with GIROUARD ASSOCIATES and RGA, conspired with Kevin J. O’Keefe, formerly a Vice President at Fleet Bank, now Bank of America, in Hartford and with GIROUARD’s lawyer, Paul J. Aparo, to commit financial institution bribery, bank fraud, honest services fraud, and money laundering.  The Indictment alleges that the purpose of the conspiracy was for GIROUARD and MAYOTTE and the other co-conspirators to enrich themselves through the use of O’Keefe’s position at Fleet Bank by, among other things, corrupting the process by which Fleet Bank sold distressed loan assets, including using the confidential information of Fleet Bank to submit winning bids, and to conceal the conspiracy from Fleet Bank and others.  The Indictment alleges that, in return for O’Keefe’s corrupt assistance, GIROUARD and MAYOTTE paid O’Keefe and Aparo a total of  approximately $1.4 million.

The Indictment further alleges that GIROUARD and MAYOTTE and their co-conspirators created companies in order to submit bids on Fleet Bank distressed loans and to receive proceeds from the scheme.  They also acted to exclude bidders who they believed would submit competitive bids for distressed loans on which GIROUARD and MAYOTTE and their co-conspirators sought to submit the winning bid.  They are alleged to have set up a shell company called Lexington Associates for the purpose of receiving and distributing a portion of the profits from the scheme.

The Indictment alleges that GIROUARD and his companies, GIROUARD ASSOCIATES and RGA, made approximately $6 million in profits from the scheme.

The Indictment further alleges that GIROUARD and MAYOTTE engaged in another scheme by themselves to defraud an unwitting investor in one of the corrupt transactions with Fleet Bank (and later Bank of America) out of more than $400,000, and that they conspired further to launder that money.

GIROUARD and MAYOTTE are charged with two counts of conspiracy, which carries a maximum term of imprisonment of five years, on each count; two counts of financial institution bribery, which carries a maximum term of imprisonment of 30 years, on each count; one count of bank fraud, which carries a maximum term of imprisonment of 30 years; eight counts of money laundering, which carries a maximum term of imprisonment of 10 years, on each count, and two counts of wire fraud, which carries a maximum term of imprisonment of 20 years, on each count.  Several of these counts also carry a maximum fine of $12 million.

GIROUARD ASSOCIATES and RGA, are charged with one count of conspiracy, one count of bank fraud and two counts of financial institution bribery.  Each count carries a maximum term of probation of five years and a fine of up to $12 million.

The Indictment was returned on January 21.  Today, GIROUARD appeared before United States Magistrate Judge Donna F. Martinez in Hartford and pleaded not guilty to the charges against him and his companies.  MAYOTTE will be arraigned next week.

O’Keefe and Aparo have been charged separately.  Their cases are pending before United States District Judge Alvin W. Thompson in Hartford.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Eric J. Glover.

Specifically, PERDIGAO pled guilty to Counts 1, 13, 31 through 56, 60 and 61of the Second Superseding Indictment.  PERDIGAO further consents to forfeiture of approximately $30 million to the United States that was charged in the Second Superseding Indictment, and which PERDIGAO admittedly stole as part of his elaborate fraud scheme.

According to court documents, PERDIGAO, a former partner at the law firm of Adams and Reese, provided legal services to companies in Louisiana’s gambling industry.  PERDIGAO admitted today in court to stealing checks belonging to Adams & Reese and depositing those checks into accounts controlled by PERDIGAO.  Further, he admitted stealing a tax refund check payable in the amount of $485,000 to Horseshoe Entertainment, which was being acquired by Harrah’s.  Once these checks were deposited, they became available for withdrawal and thus exposed the banks, such as Bank One (now Chase) to the risk of civil liability and financial loss.

PERDIGAO also admitted to concocting a fraudulent billing scheme whereby he would submit phony invoices to his clients including Pinnacle Entertainment, Inc. and Boomtown, causing them to remit millions of dollars in fraudulent payments.

According to court records, during a one-week period in October, 2004, PERDIGAO wired nearly $20,000,000 to a Swiss bank account that he controlled in Zurich, Switzerland. Additionally, PERDIGAO pled guilty to tax evasion and filing false tax returns, for the tax calendar years 2000 through 2004. The tax due and owing by PERDIGAO exceeds approximately $4,500,000 as indicated in the indictment.   The indictment and prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining the public confidence in our tax system.  Income from all sources, legal and illegal is taxable.

By failing to report substantial taxable income and utilizing fraudulent losses on these tax returns, PERDIGAO qualified himself for the earned income tax credit. The earned income tax credit is a refundable federal income tax credit for low-income, working individuals and families.

PERDIGAO faces a maximum term of imprisonment of over 300 years.  He also faces possible fines of over $8 million, as well as criminal forfeiture of $30 million.   Sentencing has been scheduled for February 11, 2009.

U. S. Attorney Jim Letten, speaking to today’s conviction and forfeiture, stated:

“As the result of the expertise, hard work and dedication of the prosecution team, including FBI and IRS Special Agents, a local attorney who had misused his position of trust to grossly enrich himself in a contorted scheme of theft and obstruction, has been brought to justice through his own admission of guilt.  Defendant JAIME PERDIGAO, by openly admitting his guilt to 30 counts of fraud, theft, tax and bank violations, computer hacking, and obstruction of justice, has further demonstrated that this investigation and prosecution by the United States was and is sound, and our evidence uncontroverted and overwhelming.   Moreover, today’s guilty plea, along with the U. S. District Court’s previous rejection of PERDIGAO’S myriad claims against the United States, is confirmation that PERDIGAO’s legal filings, evolving over many months, were absolutely without any merit whatsoever, and were part of a desperate and vicious attack in an attempt to escape punishment for such crimes.  As we have prevailed in this case through professionalism and determination, we will continue to follow evidence of crime wherever it takes us.”

The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.

The case is being prosecuted by Assistant U. S. Attorneys James Mann, Salvador Perricone,  Brian M. Klebba, and Loan “Mimi” Nguyen.