Attorney Pleads Guilty To Bribery, Tax Charges

Avon Attorney Pleads Guilty To Bribery, Tax Charges
The Hartford Courant - Courant Staff Report -February 28, 2009

HARTFORD, CT - An attorney from Avon pleaded guilty Friday in U.S. District Court in Hartford to charges of bribing a public official and aiding and assisting in the preparation of a false tax return, the U.S. attorney's office has announced. Sebastian S. Ciarcia, 56, entered the plea before U.S. District Judge Donna F. Martinez. In a prepared statement, acting U.S. Attorney for Connecticut Nora R. Dannehy said the evidence showed that Ciarcia, who is licensed to practice law in Connecticut, conducted business with the U.S. Department of Veterans Affairs through two companies, Escarnio Construction LLC and Fischer Supply LLC.

Dannehy said that beginning in approximately May 2002, Ciarcia gave things of value to Kevin Malarney, a VA employee, in exchange for Malarney's recommending and steering VA contracts for services and supplies to Escarnio Construction and Fischer Supply. Ciarcia paid Malarney's personal expenses, including auto loan payments, student loans, various insurance policy payments and the cost of trips to St. Maarten and New York. The value of the bribes given was approximately $45,600, Dannehy said. Between May 2002 and August 2005, Malarney, now 57, assisted in the awarding of 27 VA contracts worth approximately $303,000 to Ciarcia's companies. Malarney also directly authorized or caused to be authorized 48 payments totaling approximately $81,000 to Fischer Supply for services and supplies on his government purchase card. Ciarcia managed and controlled Escarnio Construction and Fischer Supply, even though Janet Escarnio is listed as the principal and owner of both companies.

In pleading guilty, Ciarcia admitted that he assisted in the preparation of Janet Escarnio's individual federal income tax returns for business income for the 2003, 2004 and 2005 calendar years. The returns under-reported the gross receipts of the companies for those years, causing a tax loss to the government of approximately $18,000. Ciarcia is scheduled to be sentenced May 15. He faces a maximum prison term of 15 years and a fine of up to $250,000 on the bribery charge, and a maximum prison term of three years and a fine of up to $100,000 on the charge of aiding and assisting a false tax return charges. On June 20, 2007, Malarney pleaded guilty to one count of bribery of a public official, and one count of filing a false federal tax return. He awaits sentencing.

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U.S. Department of Justice, United States Attorney, District of Connecticut
PRESS RELEASE - February 27, 2009

ATTORNEY PLEADS GUILTY TO BRIBING VA EMPLOYEE, TAX FRAUD

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that SEBASTIAN S. CIARCIA, 56, of Avon, pleaded guilty today before United States District Judge Donna F. Martinez in Hartford to one count of bribery of a public official, and one count of aiding and assisting in the preparation of a false tax return. According to documents filed with the Court and statements made in court, CIARCIA is an attorney licensed to practice law in the State of Connecticut, and Escarnio Construction, LLC (“Escarnio Construction”) and Fischer Supply, LLC (“Fischer Supply”) were the names of entities through which CIARCIA conducted business with the United States Department of Veterans Affairs (“VA”). Beginning in approximately May 2002, CIARCIA gave things of value to Kevin Malarney, a VA employee, in exchange for Malarney recommending and steering VA contracts for services and supplies to Escarnio Construction and Fischer Supply. CIARCIA paid Malarney’s personal expenses, including auto loan payments, student loans, various insurance policy payments and trips to St. Maarten and New York. The value of the bribes given by CIARCIA to Malarney was approximately $45,600.42. Between May 2002 and August 2005, Malarney assisted in the awarding of 27 VA contracts worth approximately $303,000 to CIARCIA’s companies. Malarney also directly authorized or caused to be authorized 48 payments in the total amount of approximately $81,000 to Fischer Supply for services and/or supplies on his government purchase card.

CIARCIA managed and controlled Escarnio Construction and Fischer Supply, even though Janet Escarnio is listed as the principal and owner of both companies. In pleading guilty, CIARCIA admitted that he assisted in the preparation of Janet Escarnio’s individual federal income tax returns for business income received by the companies for the 2003, 2004 and 2005 calendar years. The returns were fraudulent because the Schedule C’s of both companies under-reported the gross receipts of the companies for these years, causing a tax loss of approximately $18,000. CIARCIA is scheduled to be sentenced by United States District Judge Alvin W. Thompson on May 15, 2009, at which time CIARCIA faces a maximum term of imprisonment of 15 years and a fine of up to $250,000 on the bribery charge, and a maximum term of imprisonment of three years and a fine of up to $100,000 on the charge of aiding and assisting a false tax return charges. On June 20, 2007, Malarney pleaded guilty to one count of bribery of a public official, and one count of filing a false federal tax return. He awaits sentencing. This case was investigated by the Internal Revenue Service – Criminal Investigation Division; the Department of Veterans Affairs, Office of Inspector General; the Unites States General Services Administration, Office of Inspector General; the Federal Bureau of Investigation, and the VA Police Service. The case is being prosecuted by Assistant United States Attorneys Douglas P. Morabito and William M. Brown.