Girouard indictment

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					UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
Grand Jury N-08-3
UNITED STATES OF AMERICA CRIMINAL NO. _____________

v. VIOLATIONS:
Conspiracy (18 U.S.C. § 371)
RICHARD R. GIROUARD, Financial Institution Bribery
PAUL A. MAYOTTE, (18 U.S.C. § 215(a)(1))
GIROUARD ASSOCIATES, INC., and Bank Fraud (18 U.S.C. § 1344(1))
RICHARD GIROUARD ASSOCIATES, Money Laundering (18 U.S.C. § 1957)
LLC Wire Fraud (18 U.S.C. § 1343)

Forfeiture (18 U.S.C. § 982(a)(2)(A))
Defendants. Forfeiture (18 U.S.C. § 982(a)(1))

INDICTMENT

The Grand Jury charges as follows:

COUNT ONE – Conspiracy

18 U.S.C. § 371
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates)


General Allegations

The Defendants and Their Co-Conspirators

1. At all times relevant to this Indictment, defendant RICHARD R.
GIROUARD was a
real estate developer and home builder in Connecticut.
2. At all times relevant to this Indictment, defendant PAUL A. MAYOTTE
was the Chief
Financial Officer of GIROUARD ASSOCIATES, INC. and a business confidant
of defendant
RICHARD R. GIROUARD.
3. At all times relevant to this Indictment, defendant GIROUARD
ASSOCIATES, INC.
(“GIROUARD ASSOCIATES”) was an entity organized under the laws of the
State of
Connecticut. RICHARD R. GIROUARD was the president and owner of GIROUARD
ASSOCIATES, which built custom luxury homes and whose principal place of
business was
located in New Canaan, Connecticut.

4. At all times relevant to this Indictment, defendant RICHARD GIROUARD
ASSOCIATES, LLC (“Richard Girouard Associates” or “RGA”) was a limited
liability company
organized under the laws of the State of Connecticut. RICHARD R. GIROUARD
was the sole
member of RGA. RGA received and distributed money relating to
transactions referred to herein
as the “Borelli Note” and “LINC Receivables” and are discussed further
below.
5. At all times relevant to this Indictment, Kevin J. O’Keefe, a co-
conspirator who is not
named as a defendant herein, was a Vice President at Fleet Bank in
Hartford, Connecticut, and
subsequently Bank of America in Hartford after Bank of America acquired
Fleet Bank in 2004.
6. At all times relevant to this Indictment, Paul J. Aparo, a co-
conspirator who is not
named as a defendant herein, was a lawyer. Aparo was a partner in a law
firm in Hartford,
Connecticut. Aparo represented defendants RICHARD R. GIROUARD, GIROUARD
ASSOCIATES and other entities controlled by GIROUARD in numerous real
estate and other
transactions.
Other Relevant Entities

7. Investment Management Associates, LLC (“Investment Management
Associates” or
“IMA”) was a limited liability corporation organized under the laws of
the State of Connecticut
on or about October 29, 2001. RICHARD R. GIROUARD was the manager of IMA.
RICHARD
R. GIROUARD and Paul J. Aparo were the members of IMA. IMA was set up for
the purpose of
submitting a bid on distressed loan assets owned by Fleet Bank.
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8. RRG Investments, LLC (“RRG Investments”) was a limited liability
corporation
organized under the laws of the State of Connecticut on or about
September 20, 2002. RRG
Investments was set up for the purpose of submitting a bid to Fleet Bank
to purchase Fleet Bank’s
share of an entity named “LINC Receivables 1999 Corporation,” which was
commonly known
(and referred to herein) as “LINC Receivables.” “RRG” are the initials of
defendant RICHARD
R. GIROUARD. RRG Investments was owned at various times by RICHARD R.
GIROUARD
and GIROUARD ASSOCIATES.
9. Lexington Associates was the name of a shell company used by Paul J.
Aparo and the
other co-conspirators in connection with the conspiracy. Aparo controlled
a bank account under
the name of Lexington Associates through which RICHARD R. GIROUARD and
PAUL A.
MAYOTTE caused certain proceeds of the conspiracy to be distributed.
10. AGI Associates, LLC (“AGI”) was a limited liability corporation
organized under the
laws of the State of Delaware in or about July 2004. AGI was a company
set up by RICHARD R.
GIROUARD and PAUL A. MAYOTTE for the purpose of purchasing an additional
portion of
LINC Receivables owned by Dresdner Bank AG.
11. At all times relevant to this Indictment, Fleet Bank (including but
not limited to Fleet
National Bank), Bank of America, Sovereign Bank and Webster Bank were
financial institutions
whose deposits were insured by the Federal Deposit Insurance Corporation,
and which were
engaged in, and the activities of which affected, interstate commerce.
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Certain Relevant Transactions

12. In the fall of 2001, Fleet Bank wished to sell a number of distressed
loan assets and
put them out for bid. These distressed loan assets were loans that Fleet
Bank had made to
borrowers. Fleet Bank was legally entitled to repayment on the loans from
the borrowers. The
distressed loan assets that Fleet Bank put out for bid in the fall of
2001 included a mortgage
commonly referred to as the “Borelli Note.”
13. Fleet Bank owned approximately 49.12% of an entity known as “LINC
Receivables.”
LINC Receivables was the owner of certain leases and installment sales
contracts which produced
a stream of revenue that was essentially divided proportionally among
LINC Receivables’ three
owners: Fleet Bank (49.12%); Dresdner (25.44%); and Prudential (25.44%).
Kevin J. O’Keefe
was the officer at Fleet Bank responsible for overseeing Fleet Bank’s
interest in LINC
Receivables.
The Conspiracy

14. Beginning in or about October 2001, and continuing to at least in or
about February
2007, the exact dates being unknown to the Grand Jury, in the District of
Connecticut and
elsewhere, the defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD
ASSOCIATES, LLC, and RICHARD GIROUARD ASSOCIATES, LLC, did unlawfully,
willfully and knowingly conspire, combine, confederate and agree with
each other and with
persons known and unknown to the Grand Jury to:
(a)
corruptly give, offer, and promise anything of value to a person with
intent to
influence and reward an officer and employee of Fleet Bank in connection
with the
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business and transactions of Fleet Bank, in violation of Title 18 United
States
Code, Section 215(a)(1);

(b)
execute and attempt to execute a scheme and artifice to defraud Fleet
Bank, in
violation of Title 18, United States Code, Section 1344(1);
(c)
execute and attempt to execute a scheme and artifice to defraud Fleet
Bank of the
honest services of Kevin J. O’Keefe in violation of Title 18, United
States Code,
Section 1343 and 1346; and
(d)
engage and attempt to engage in monetary transactions in criminally
derived
property of a value greater than $10,000 and that was derived from
specified
unlawful activity, in violation of Title 18, United States Code, Section
1957(a).
Purpose of the Conspiracy

15. It was a purpose of the conspiracy for the co-conspirators to enrich
themselves
through the use of Kevin J. 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.
Manner And Means Of The Conspiracy

The manner and means by which defendants RICHARD R. GIROUARD, PAUL A.
MAYOTTE, GIROUARD ASSOCIATES and RGA, and others known and unknown to the
Grand Jury, sought to accomplish the objects of the conspiracy included
the following:

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16. It was part of the conspiracy that the defendants and their co-
conspirators would and
did agree that defendant GIROUARD would pay O’Keefe and Aparo in exchange
for O’Keefe’s
corrupt assistance in connection with transactions involving Fleet Bank.
17. It was part of the conspiracy that the defendants and their co-
conspirators would and
did create, and cause to be created, companies in order to submit bids on
Fleet Bank distressed
loans and to receive proceeds from the scheme.
18. It was part of the conspiracy that the defendants and their co-
conspirators would and
did obtain confidential information belonging to Fleet Bank and use that
information to consider
submitting bids, and to submit bids, on distressed loan assets being
offered by Fleet Bank.
19. It was part of the conspiracy that the defendants and their co-
conspirators would and
did exclude bidders who they believed would submit competitive bids for
distressed loans on
which the defendant and his co-conspirators sought to submit the winning
bid.
20. It was part of the conspiracy that the defendants and their co-
conspirators would and
did set up Lexington Associates for the purpose of receiving and
distributing a portion of the
profits from the scheme.
21. It was part of the conspiracy that the defendants and their co-
conspirators would and
did profit financially from their corrupt and fraudulent scheme. GIROUARD
and his companies,
GIROUARD ASSOCIATES and RGA, made approximately $6 million in profits
from the
scheme. GIROUARD paid his co-conspirators, Kevin O’Keefe and Paul Aparo,
approximately
$775,000 each.
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Overt Acts

22. In furtherance of the conspiracy, and to accomplish its purposes and
objects, the
defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES and
RGA, together with Paul Aparo, Kevin O’Keefe and others known and unknown
to the Grand
Jury, committed and caused others to commit at least one of the following
overt acts, among
others, in the District of Connecticut and elsewhere:
The “Borelli Note”

a. On or about October 29, 2001, RICHARD R. GIROUARD and Paul J. Aparo
caused Articles of Organization to be filed with the Office of the
Secretary of the State of
Connecticut for Investment Management Associates, LLC.
b. On or about November 27, 2001, RICHARD R. GIROUARD submitted to Fleet
Bank an offer to purchase certain assets of Fleet Bank on behalf of
Investment Management
Associates, LLC, including an offer to purchase the Borelli Note for
$35,823.
c. On or about April 24, 2002, RICHARD R. GIROUARD executed two releases
of mortgage as Manager of IMA for the property related to the Borelli
Note in exchange for
$250,000.
d. On or about June 27, 2002, RICHARD R. GIROUARD and PAUL A.
MAYOTTE caused a check to issue from RGA to Lexington Associates in the
amount of
$100,121.25, which represented half of RGA’s profits on the purchase and
sale of the Borelli
Note.
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e. On or about July 3, 2002, Paul J. Aparo caused a payment in the amount
of
$50,060.63 to be made to Kevin J. O’Keefe, which represented half of the
amount that RICHARD
R. GIROUARD and PAUL A. MAYOTTE caused to be paid to Lexington
Associates.
LINC Receivables

f. On or about September 20, 2002, defendant RICHARD R. GIROUARD and
Paul Aparo caused the Articles of Organization for RRG Investments to be
filed with the Office of
the Secretary of the State of Connecticut.
g. On or about October 9, 2002, RICHARD R. GIROUARD caused a letter to be
sent from RRG Investments to Kevin O’Keefe at Fleet Bank offering the sum
of $8,000,000 for
Fleet Bank’s interest in LINC Receivables.
h. On or about November 13, 2002, RICHARD R. GIROUARD caused a letter to
be sent from RRG Investments to Kevin O’Keefe at Fleet Bank offering the
sum of $7,766,000
for Fleet Bank’s interest in LINC Receivables.
i. On or about November 13, 2002, Kevin O’Keefe wrote a Credit Policy
Compliance memorandum seeking internal approval at Fleet Bank to sell
Fleet Bank’s interest in
LINC Receivables to RRG.
j. On or about November 14, 2002, RICHARD R. GIROUARD, PAUL A.
MAYOTTE and GIROUARD ASSOCIATES caused $776,600 to be wired from a bank
account
of GIROUARD ASSOCIATES to Fleet Bank as a down payment for the purchase
of Fleet Bank’s
share of LINC Receivables.
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k. On or about November 15, 2002, RRG Investments and Fleet Bank entered
into
a Purchase and Sale Agreement for LINC Receivables. The Purchase and Sale
Agreement was
executed by defendant RICHARD R. GIROUARD on behalf of RRG Investments
and by Kevin
O’Keefe on behalf of Fleet Bank.
l. On or about November 20, 2002, RICHARD R. GIROUARD, PAUL A.
MAYOTTE and GIROUARD ASSOCIATES caused $900,000 to be sent by wire to an
account of
Paul J. Aparo’s law firm in Hartford for the closing of the purchase of
LINC Receivables by RRG
Investments.
m. On or about November 20, 2002, RICHARD R. GIROUARD, PAUL A.
MAYOTTE and RGA caused $1,173,600 to be sent by wire from a bank account
of RGA to an
account of the law firm of Paul J. Aparo in Hartford for the closing of
the purchase of LINC
Receivables by RRG Investments.
n. On or about November 22, 2002, RICHARD R. GIROUARD caused a letter to
be sent to Lexington Associates and Paul Aparo stating that RRG
Investments agreed to pay
Lexington Associates 15% of the profits resulting from the purchase of
LINC Receivables.
o. On or about January 21, 2003, RICHARD R. GIROUARD caused a check in
the amount of $50,000 to be written on an account of GIROUARD ASSOCIATES’
payable to the
order of Lexington Associates, which was a payment made pursuant to the
agreement to pay
Kevin O’Keefe and Paul Aparo, through Lexington Associates, 15% of the
profits from RRG
Investment’s purchase of LINC Receivables.
p. On or about the following dates, in approximately the following
amounts,
RICHARD R. GIROUARD and PAUL A. MAYOTTE caused wire transfers to be made
from a
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bank account of RRG Investments to the bank account of Lexington
Associates, each of which
was a payment made pursuant to the agreement to pay Kevin O’Keefe and
Paul Aparo, through
Lexington Associates, 15% of the profits from RRG Investment’s purchase
of LINC Receivables:

Overt Act Date Amount
p(1) August 20, 2003 $100,176.74
p(2) September 22, 2003 $75,779.38
p(3) October 20, 2003 $82,498.05
p(4) November 20, 2003 $93,967.62
p(5) December 22, 2003 $76,191.15
p(6) January 20, 2004 $63,831.65
p(7) February 20, 2004 $80,892.06
p(8) March 22, 2004 $89,683.89
p(9) April 20, 2004 $61,720.30
p(10) May 20, 2004 $61,987.12
p(11) June 21, 2004 $56,626.89

q. On or about May 28, 2004, RICHARD R. GIROUARD and PAUL A.
MAYOTTE caused $1,600,000 to be transferred from an account of RGA at
Sovereign Bank to an
account of RRG Investments at Sovereign Bank.
All in violation of Title 18, United States Code, Sections 371 and 2.

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COUNT TWO – Financial Institution Bribery

18 U.S.C. § 215(a)(1)
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates)


1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16
through 22 of
Count One of this Indictment are realleged as though fully set forth
herein.
2. From in or about October 2001, the exact being unknown to the Grand
Jury, and
continuing to on or about July 3, 2002, in the District of Connecticut
and elsewhere, the
defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES,
INC. and RICHARD GIROUARD ASSOCIATES, LLC did knowingly and willfully
corruptly
give, offer, and promise a thing of value in excess of $1,000 to a person
with intent to influence
and reward an officer and employee of a financial institution in
connection with the business and
transactions of that financial institution, that is, defendants GIROUARD,
MAYOTTE,
GIROUARD ASSOCIATES and RGA did knowingly and willfully corruptly give,
offer and
promise money to Kevin J. O’Keefe and Paul J. Aparo with the intent to
influence and reward
Kevin J. O’Keefe, a Vice President of Fleet Bank, in connection with the
sale of a loan known as
the “Borelli Note.”
All in violation of Title 18, United States Code, Sections 215(a)(1) and
2.

COUNT THREE – Financial Institution Bribery

18 U.S.C. § 215(a)(1)
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates, LLC)


1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16
through 22 of
Count One of this Indictment are realleged as though fully set forth
herein.
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2. From in or about September 2002, and continuing to at least February
2007, the exact
dates being unknown to the Grand Jury, in the District of Connecticut and
elsewhere, the
defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES,
INC. and RICHARD GIROUARD ASSOCIATES, LLC did knowingly and willfully
corruptly
give, offer, and promise a thing of value in excess of $1,000 to a person
with intent to influence
and reward an officer and employee of a financial institution in
connection with the business and
transactions of that financial institution, that is, defendants GIROUARD,
MAYOTTE,
GIROUARD ASSOCIATES and RGA did knowingly and willfully corruptly give,
offer and
promise to Kevin J. O’Keefe and Paul J. Aparo 15% of the profits
resulting from the purchase of
Fleet Bank’s portion of an entity known as “LINC Receivables” with the
intent to influence and
reward Kevin J. O’Keefe, a Vice President of Fleet Bank, in connection
with the sale and
purchase of Fleet Bank’s portion of “LINC Receivables.”
All in violation of Title 18, United States Code, Sections 215(a)(1) and
2.

COUNT FOUR – Bank Fraud

18 U.S.C. § 1344(1)
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates)


1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16
through 22 of
Count One of this Information are realleged as though fully set forth
herein.
2. From in or about October 2001, and continuing to at least February
2007, the exact
dates being unknown to the Grand Jury, the defendants, RICHARD R.
GIROUARD, PAUL A.
MAYOTTE, GIROUARD ASSOCIATES, INC. and RICHARD GIROUARD ASSOCIATES,
LLC, did knowingly and intentionally execute and attempt to execute a
scheme to defraud Fleet
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Bank in that defendants GIROUARD, MAYOTTE, GIROUARD ASSOCIATES and RGA
did
secretly offer and agree to make, and did in fact make, corrupt payments
to Kevin J. O’Keefe and
Paul J. Aparo with the intent to influence and reward O’Keefe as a Vice
President of Fleet Bank
in connection with transactions involving Fleet Bank, including obtaining
confidential
information and other services.

All in violation of Title 18, United States Code, Sections 1344(1) and 2.

COUNTS FIVE through NINE – Money Laundering

18 U.S.C. § 1957
(Richard R. Girouard, Paul A. Mayotte)


1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16
through 22 of
Count One of this Information are realleged as though fully set forth
herein.
2. On or about the dates set forth below, in the District of Connecticut
and
elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE did
knowingly
engage and attempt to engage in monetary transactions in criminally
derived property of a value
greater than $10,000, all involving financial institutions which were
engaged in, and the activities
of which affected, interstate commerce, such property having been derived
from specified
unlawful activity, that is financial institution bribery (18 U.S.C. §
215) and bank fraud (18 U.S.C.
§ 1344), as follows:
Count Date Monetary Transaction
5 5/27/04 Transfer in the amount of $1,600,000 from an account of RGA at
Sovereign Bank to an account of RRG Investments at Sovereign Bank
6 5/27/04 Transfer in the amount of $320,000 from an account of RRG
Investments at Sovereign Bank to an account of GIROUARD
ASSOCIATES at Sovereign Bank for member draw

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Count Date Monetary Transaction
7 5/27/04 Transfer by check #0109 in the amount of $1,280,477.29 from an
account of RRG Investments at Sovereign Bank to the Lafayette Life
Insurance Company in Lafayette, Indiana for member draw
8 11/17/04 Transfer in the amount of $1,225,000 from Lafayette Life
Insurance
Company to an account of Lexington Associates at Webster Bank
9 11/18/04 Transfer by Webster Bank Official Check #1551712 in the amount
of
$1,118,762.76 to the sellers of 10 Woodland Road, Norwalk, CT

All in violation of Title 18, United States Code, Sections 1957 and 2.

COUNT TEN – Conspiracy

18 U.S.C. § 371
(Richard R. Girouard, Paul A. Mayotte)


1. The allegations contained in Paragraphs 1 through 13 of Count One of
this Information
are realleged as though fully set forth herein.
2. Defendant RICHARD R. GIROUARD needed to raise capital in order for his
company,
RRG Investments, LLC, to be able to purchase Fleet Bank’s portion of LINC
Receivables.
GIROUARD and defendant PAUL A. MAYOTTE sought and used the assistance of
others,
including GIROUARD’s long-time banker, to identify and approach
individuals, banks, and
private investment firms willing to invest or loan money in connection
with the purchase of LINC
Receivables.
3. In or about October 2002, GIROUARD and defendant PAUL A. MAYOTTE
entered
into discussions with a private investment firm, referred to herein as
“Company A,” and Company
A’s sole owner, referred to herein as “Individual A,” about the ability
and desire of Individual A
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and his company to provide financing for the purchase of Fleet Bank’s
portion of LINC
Receivables.

4. On or about November 18, 2002, GIROUARD and MAYOTTE came to an
agreement
on terms with Individual A. Under a subsequent written agreement between
RRG Investments
and Company A, dated November 22, 2002, RRG Investments and Company A
agreed to loan
RRG Investments $2,500,000 in return for a 32% share of the net cash
flows received pursuant to
the purchase of LINC Receivables after RRG Investments and Company A had
recouped their
initial investment of $4,150,000 and $2,500,000, respectively.
5. On or about November 20 and 22, 2002, Company A wired a total of
approximately
$2,500,000 to the law firm of Paul Aparo, who was acting as counsel for
RRG Investments, for
RRG Investments’ purchase of Fleet Bank’s share of LINC Receivables.
6. Between November 2002 and September 2005, RRG Investments paid Company
A its
original investment of approximately $2,500,000 back plus 32% of the
profits up to September
2005.
7. On or about October 24, 2005, MAYOTTE informed Individual A that RRG
Investments would be holding any further distributions due to legal and
tax issues that had arisen
concerning LINC Receivables. MAYOTTE told Individual A that he would keep
him advised
and let him know as soon as the issues were resolved.
The Conspiracy

8. Beginning in or about October 2005, and continuing to at least in or
about September
2008, the exact dates being unknown to the Grand Jury, in the District of
Connecticut and
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elsewhere, the defendants, RICHARD R. GIROUARD and PAUL A. MAYOTTE, did
unlawfully, willfully and knowingly conspire, combine, confederate and
agree with each other
and with persons known and unknown to the Grand Jury to execute and
attempt to execute a
scheme and artifice to defraud Individual A and Company A out of money
and property in that
GIROUARD and MAYOTTE caused RRG Investments to make no payments to
Company A after
September 2005, notwithstanding the fact that Company A was due and owed
32% of the
approximately $1,334,846.98 that RRG Investments received from LINC
Receivables between
October 2005 and September 2008, all in violation of Title 18, United
States Code, Section 1343.

Object of the Conspiracy

9. It was an object of the conspiracy for GIROUARD and MAYOTTE to enrich
themselves by deceiving Individual A into believing that his company,
Company A, was not
entitled to any further payments pursuant to the purchase of LINC
Receivables and instead
keeping for themselves the payments to which Company A was legally
entitled.
Manner and Means of the Conspiracy

The manner and means by which defendants RICHARD R. GIROUARD and PAUL A.
MAYOTTE, and others known and unknown to the Grand Jury, sought to
accomplish the object
of the conspiracy included the following:

10. It was part of the conspiracy that GIROUARD and MAYOTTE would and did
inform
Individual A that due to legal and tax issues, they would be temporarily
holding distributions to
Company A from the purchase of LINC Receivables.
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11. It was part of the conspiracy that GIROUARD and MAYOTTE would and did
conceal from Individual A and Company A the fact that the legal and tax
issues cited as cause for
temporarily holding distributions did not result in the need to withhold
distributions to Company
A indefinitely.

12. It was part of the conspiracy that GIROUARD and MAYOTTE would not and
did not
resume making payments to Individual A and Company A, as they were knew
they were required
to do under the the written agreement between RRG Investments and Company
A.
13. It was part of the conspiracy that GIROUARD and MAYOTTE would and did
divide
among themselves the proceeds of their fraudulent scheme.
Overt Acts

In furtherance of the conspiracy, and to accomplish its purposes and
objects, the
defendants, RICHARD R. GIROUARD and PAUL A. MAYOTTE, together with others
known
and unknown to the United States Attorney, committed and caused others to
commit at least one
of the following overt acts, among others, in the District of Connecticut
and elsewhere:

14. On or about March 20, 2006, MAYOTTE sent an email to one of RRG
Investments’
accountants stating that RRG Investments’ accounts payable to Company A
for the year-end 2005
was correct and that RRG Investments was “just holding” the money.
15. On or about December 7, 2006, MAYOTTE caused approximately
$103,775.59 to be
wired from an account of RRG Investments at Sovereign Bank to an account
at First National
Bank of Jasper, Alabama, which on or about that date constituted
approximately half of the
proceeds that should have been distributed to Company A since October
2005.
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16. On or about December 7, 2006, GIROUARD and MAYOTTE caused
approximately
$103,775.60 to be wired from an account of RRG Investments at Sovereign
Bank to an account
controlled by GIROUARD at Bank of America in Florida, which on or about
that date constituted
approximately half of the proceeds that should have been distributed to
Company A since October
2005.
17. In or about March 2007, the exact date being unknown to the Grand
Jury, MAYOTTE
told one of RRG Investments’ accountants that there was a “new investor”
who had been paid half
of the money that had been listed as an account payable to Company A.
18. On or about January 22, 2008, MAYOTTE caused approximately $36,700.81
to be
wired from an account of RRG Investments at Sovereign Bank to an account
at First National
Bank of Jasper, Alabama.
All in violation of Title 18, United States Code, Sections 371 and 2.

COUNTS ELEVEN and TWELVE – Wire Fraud

18 U.S.C. § 1343
(Richard R. Girouard, Paul A. Mayotte)


1. The allegations contained in Paragraphs 1 through 13 of Count One of
this Indictment,
and the allegations contained Paragraphs 1 through 7 and Paragraphs 10 -
18 of Count Ten of this
Indictment, are realleged as though fully set forth herein.
2. Beginning in approximately October 2005, the precise date being
unknown to the
Grand Jury, and continuing to at least September 2008, in the District of
Connecticut and
elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE knowingly
and
intentionally devised and intended to devise, and participated in, a
scheme and artifice to defraud
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individuals out of money and property, and to obtain money and property
by means of materially
false and fraudulent pretenses, representations, promises and omissions,
in that defendants
GIROUARD and MAYOTTE caused RRG Investments to make no payments to
Company A after
September 2005, notwithstanding the fact that Company A was due and owed
32% of the
approximately $1,334,846.98 that RRG Investments received from LINC
Receivables between
October 2005 and September 2008.

3. For the purpose of executing and attempting to execute the aforesaid
scheme and
artifice to defraud, on or about the dates listed below, in the District
of Connecticut and
elsewhere, defendants GIROUARD and MAYOTTE did knowingly cause to be
transmitted in
interstate commerce by means of wire communication certain signs, signals
and sounds the
following:
Count Date Use of Interstate Wires
11 12/7/06 Wire transfer in the amount of $103,775.59 from an account of
RRG
Investments at Sovereign Bank in Connecticut to an account at First
National Bank of Jasper, Alabama
12 12/7/06 Wire transfer in the amount of $103,775.60 from an account of
RRG
Investments at Sovereign Bank in Connecticut to an account at Bank of
America in Stuart, Florida

All in violation of Title 18, United States Code, Sections 1343 and 2.

COUNTS THIRTEEN through FIFTEEN – Money Laundering

18 U.S.C. § 1957
(Richard R. Girouard, Paul A. Mayotte)

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1. The allegations contained in Paragraphs 1 through 13 of Count One of
this Indictment,
and the allegations contained in Paragraphs 1 through 7 and Paragraphs 10
- 18 of Count Ten of
this Indictment, are realleged as though fully set forth herein.
2. At all times relevant to this Indictment, Bank of America, Sovereign
Bank, and First
National Bank of Jasper, Alabama were financial institutions which were
engaged in, and the
activities of which affected, interstate commerce.
3. On or about the dates set forth below, in the District of Connecticut
and
elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE did
knowingly
engage and attempt to engage in a monetary transaction in criminally
derived property of a value
greater than $10,000, all involving financial institutions which were
engaged in, and the activities
of which affected, interstate commerce, such property having been derived
from specified
unlawful activity, that is wire fraud (18 U.S.C. § 1343), as follows:
Count Date Monetary Transaction
13 12/7/06 Transfer in the amount of $125,000.00 from an account at Bank
of
America in Stuart, Florida to an account of an automobile dealer in
New Haven, Connecticut at Sovereign Bank
14 4/13/07 Transfer by check #115 in the amount of $34,000 from an
account at
the First National Bank of Jasper, Alabama to an account at Webster
Bank
15 5/19/07 Transfer by check #116 in the amount of $70,000 from an
account at
the First National Bank of Jasper, Alabama to Wachovia Bank

All in violation of Title 18, United States Code, Sections 1957 and 2.

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FORFEITURE ALLEGATION UNDER 18 U.S.C. § 982(a)(2)(A)
(Financial Institution Bribery)
Upon conviction of one or more of the charges of financial institution
bribery or
conspiracy to commit financial institution bribery alleged in Counts One
through Three of this
Indictment, defendants RICHARD A. GIROUARD, PAUL A. MAYOTTE, GIROUARD
ASSOCIATES, INC. and RICHARD GIROUARD ASSOCIATES, LLC shall forfeit to
the
United States of America pursuant to 18 U.S.C. § 982(a)(2)(A), all right,
title, and interest in any
and all property, real or personal, which constitutes or is derived from
proceeds traceable to
violations of either 18 U.S.C. § 215(a)(1), or conspiracy to commit
violations of 18 U.S.C. §
215(a)(1), in violation of 18 U.S.C. § 371, including but not limited to
the following:
Real Property:

(a)
An interest up to the amount of $1,118,762 in certain real
property located at 10½ Woodland Road, Norwalk,
Connecticut.
Money Judgment:

(b)
$10,328,606.96, which is a sum of money equal to the total
amount of any property, real or personal, which constitutes
or is derived from proceeds traceable to violations of either
18 U.S.C. § 215(a)(1), or conspiracy to commit violations of
18 U.S.C. § 215(a)(1), in violation of 18 U.S.C. § 371.
If any of the above-described forfeitable property, as a result of any
act or omission of the
defendant, cannot be located upon the exercise of due diligence, has been
transferred, sold to, or
deposited with a third party, has been placed beyond the jurisdiction of
the court, has been
substantially diminished in value, or has been commingled with other
property which cannot be
divided without difficulty, it is the intent of the United States,
pursuant to 21 U.S.C. § 853(p), as

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incorporated by 18 U.S.C. § 982(b) and 28 U.S.C. § 2461(c), to seek
forfeiture of any other
property of said defendant up to the value of the forfeitable property
described above.

All in accordance with Title 18, United States Code, Section 982(a), and
Rule 32.2(a),
Federal Rules of Criminal Procedure.

FORFEITURE ALLEGATION UNDER 18 U.S.C. § 982(a)(2)(A)
(Bank Fraud)
Upon conviction of one or more of the charges of bank fraud or conspiracy
to commit
bank fraud alleged in Counts One and Four of this Indictment, defendants
RICHARD A.
GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES, INC. and RICHARD
GIROUARD ASSOCIATES, LLC shall forfeit to the United States of America
pursuant to 18

U.S.C. § 982(a)(2)(A), all right, title, and interest in any and all
property, real or personal, which
constitutes or is derived from proceeds traceable to violations of either
18 U.S.C. § 1344(1), or
conspiracy to commit violations of 18 U.S.C. § 1344(1), in violation of
18 U.S.C. § 371, including
but not limited to the following:
Real Property:

(a)
An interest up to the amount of $1,118,762 in certain real
property located at 10½ Woodland Road, Norwalk,
Connecticut.
Money Judgment:

(b)
$10,328,606.96, which is the sum of money equal to the
total amount of any property, real or personal, which
constitutes or is derived from proceeds traceable to
violations of either 18 U.S.C. § 1344(1), or conspiracy to
commit violations of 18 U.S.C. § 1344(1), in violation of 18
U.S.C. § 371.
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If any of the above-described forfeitable property, as a result of any
act or omission of the
defendant, cannot be located upon the exercise of due diligence, has been
transferred, sold to, or
deposited with a third party, has been placed beyond the jurisdiction of
the court, has been
substantially diminished in value, or has been commingled with other
property which cannot be
divided without difficulty, it is the intent of the United States,
pursuant to 21 U.S.C. § 853(p), as
incorporated by 18 U.S.C. § 982(b) and 28 U.S.C. § 2461(c), to seek
forfeiture of any other
property of said defendant up to the value of the forfeitable property
described above.

All in accordance with Title 18, United States Code, Section 982(a), and
Rule 32.2(a),
Federal Rules of Criminal Procedure.

FORFEITURE ALLEGATION UNDER 18 U.S.C. § 982(a)(1)
(Money Laundering)
Upon conviction of one or more of the offenses alleged in Counts One and
Five through
Nine of this Indictment, defendants RICHARD R. GIROUARD and PAUL A.
MAYOTTE shall
forfeit to the United States of America pursuant to 18 U.S.C. §
982(a)(1), all right, title, and
interest in any and all money and other property involved in each offense
in violation of either 18

U.S.C. § 1957, or conspiracy to commit violations of 18 U.S.C. § 1957, in
violation of 18 U.S.C.
§ 371, including but not limited to the following:
Real Property:

(a)
An interest up to the amount of $1,118,762 in certain real
property located at 10½ Woodland Road, Norwalk,
Connecticut.
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Money Judgment:

(b)
A sum of money equal to the total amount of any property,
real or personal, which constitutes or is derived from
proceeds traceable to violations of 18 U.S.C. § 1957.
If any of the above-described forfeitable property, as a result of any
act or omission of the
defendant, cannot be located upon the exercise of due diligence, has been
transferred, sold to, or
deposited with a third party, has been placed beyond the jurisdiction of
the court, has been
substantially diminished in value, or has been commingled with other
property which cannot be
divided without difficulty, it is the intent of the United States,
pursuant to 21 U.S.C. § 853(p), as
incorporated by 18 U.S.C. § 982(b) and 28 U.S.C. § 2461(c), to seek
forfeiture of any other
property of said defendant up to the value of the forfeitable property
described above.

All in accordance with Title 18, United States Code, Section 982(a)(1),
and Rule 32.2(a),
Federal Rules of Criminal Procedure.

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A TRUE BILL


FOREPERSON


NORA R. DANNEHY
ACTING UNITED STATES ATTORNEY

ERIC J. GLOVER
ASSISTANT UNITED STATES ATTORNEY

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