United States Attorney's Office District of Connecticut
Press Release

GREENWICH MAN FOUND GUILTY OF CHARGES RELATED TO NHSB/NEWALLIANCE BANK IPO CONVERSION SCHEME*

Kevin J. O’Connor, United States Attorney for the District of Connecticut, today announced that a federal jury sitting in New Haven has found JOHN M. LUCARELLI, age 34, of Greenwich, Connecticut, guilty of one count of conspiracy to commit mail fraud and securities fraud and one count of securities fraud in connection with the New Haven Savings Bank/NewAlliance Bancshares, Inc. Initial Public Offering (IPO). The jury also found LUCARELLI not guilty of three counts of mail fraud and five counts of securities fraud. The verdict comes after a two-week trial and more than five days of jury deliberation.

According to evidence introduced by the Government at trial, LUCARELLI and others conspired to illegally obtain shares of NewAlliance Bancshares, Inc. (NAB) stock. Neither LUCARELLI nor the co-conspirators were eligible to obtain NAB stock at its $10 Initial Public Offering price because none of them were eligible account holders (depositors) of New Haven Savings Bank (NHSB). However LUCARELLI and his co-conspirators conspired to and participated in a scheme to purchase the stock at that $10 price by having individuals who were account holders purchase the stock for members of the conspiracy. After purchasing the shares in the names of other people, the members of the conspiracy then sold the shares at a profit, which was shared by LUCARELLI and the others.

“We are pleased that the jury found this defendant guilty of two counts of the indictment, and we appreciate each juror’s service and days of thoughtful deliberation,” U.S. Attorney O’Connor stated. “This Office and our law enforcement partners remain committed to investigating and prosecuting individuals who break our nation’s securities laws, and this investigation is ongoing.”

Judge Arterton has scheduled sentencing for October 31, 2006, at which time LUCARELLI faces a maximum term of imprisonment of 30 years and a fine of up to approximately $3.8 million.*

In October 2005, LUCARELLI and CHANCE M. VOUGHT, age 57, of Quogue, New York, were charged in a 12-count Indictment. On June 29, 2006, VOUGHT pleaded guilty to one count of securities fraud. Robert R. Ross of Fairfield, Connecticut has also pleaded guilty to his involvement in this bank conversion scheme and he testified during the trial. VOUGHT, Ross and a third individual who participated in this scheme, George Kundrat, await sentencing.

U.S. Attorney O’Connor encouraged individuals who believe they are victims in this matter to contact the United States Attorney’s Office by e-mail, or through the Office’s website by clicking this link.

This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, with the assistance of the Securities and Exchange Commission. The Federal Deposit Insurance Corporation, the United States Department of the Treasury Office of Thrift Supervision, and the Connecticut Department of Banking Securities and Business Investment Division have also assisted in the investigation.

The case is being prosecuted by Assistant United States Attorney Michael S. McGarry and David A. Ring.

*On March 8, 2007, U.S. District Judge Janet Bond Arterton granted the defendant’s Motion for Judgment of Acquittal or New Trial. A judgment of acquittal was entered on the two counts on which the defendant was convicted.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov