United States Attorney's Office District of Connecticut
Press Release

SHORELINE TRASH HAULER PLEADS GUILTY TO FEDERAL RACKETEERING CONSPIRACY CHARGE

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that DENNIS BOZZUTO, age 36, of Madison, Connecticut, pleaded guilty today before Senior United States District Judge Ellen Bree Burns in New Haven to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO). BOZZUTO is an owner and operator of John’s Refuse, a carting company located in Northford, Connecticut.

According to documents filed with the Court and statements made in court, BOZZUTO today admitted that, along with others, he conspired to perpetuate a system, commonly called the “property rights system.” Carters engaged in the property rights system would not service or compete for other carters’ customers. The property rights system essentially destroys free enterprise, allowing the participating carters to artificially inflate their prices and leaving waste removal customers with no other options. In this scheme, which was directed at commercial and municipal customers, participating carters agreed to quote inflated prices to customers controlled by other carters. BOZZUTO admitted that he participated in the affairs of the enterprise by agreeing to respect the unwritten rules of the property rights system. Some of BOZZUTO’s co-conspirators enforced this system through extortion and threats.

According to statements made by the Government at today’s court proceeding, BOZZUTO joined this conspiracy by placing artificially high bids with customers “owned” by a co-conspirator, for the purpose of furthering the property rights system. On two occasions, at the request of a co-conspirator, BOZZUTO, through John’s Refuse, submitted inflated bids to“Customer X” and “Customer Y.” At that time, these two customers were being serviced by American Disposal Services of Connecticut (“ADS”). In March 2005, the co-conspirator instructed BOZZUTO to submit a bid of “one-four,” or $14 per yard for trash removal services, to Customer X, which was approximately twice the price that ADS had bid. BOZZUTO subsequently faxed the inflated bid of $14 per yard to Customer X. Also in March 2005, the co-conspirator requested that BOZZUTO bid $14 per yard to Customer Y, which, again, was approximately twice the price that ADS was charging Customer Y at that time. BOZZUTO subsequently faxed an inflated bid of approximately $10 per yard to Customer Y.

On June 8, 2006, a federal grand jury in New Haven returned an indictment charging BOZZUTO and several other individuals and businesses on various charges stemming from a long-term investigation in the waste-hauling industry in Connecticut and eastern New York. Today, BOZZUTO pleaded guilty to Count Two of the Indictment.

Judge Burns has scheduled sentencing for February 2, 2007, at which time BOZZUTO faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

This matter is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the United States Department of Labor, Office of Labor Racketeering and Fraud Investigations and the Connecticut State Police. The United States Marshals Service, the Drug Enforcement Agency’s Office of Professional Responsibility, the Connecticut Department of Correction and the New Haven, Milford and Ansonia Police Departments have provided critical assistance in the Investigation. Assistant United States Attorneys Michael J. Gustafson, Raymond F. Miller and Henry K. Kopel are prosecuting this case.

CONTACT:

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