United States Attorney's Office District of Connecticut
Press Release

RHODE ISLAND MAN PLEADS GUILTY TO DEFRAUDING THE HARTFORD AND TAX EVASION

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that MICHAEL YOUNG, 35, of Goldfinch Drive, Coventy, Rhode Island, pleaded guilty before Senior United States District Judge Alfred V. Covello in Hartford to one count of mail fraud and one count of tax evasion stemming from his participation in a scheme to defraud The Hartford Insurance Company.   

According to documents filed with the Court and statements made at the court hearing, YOUNG was employed by a company that did business with The Hartford Insurance Company (“The Hartford”). In pleading guilty, YOUNG admitted that, from approximately 2001 through July 2005, he conspired with Todd Olynciw, a Project Procurement Manager for The Hartford, to defraud The Hartford. Through this scheme, YOUNG used a cleaning business, referenced as Entity B, to coordinate the delivery and installation of furniture on behalf of The Hartford.  Olynciw arranged for The Hartford to award more than $3.6 million in contracts to Entity B, in exchange for personal payments or kickbacks. Olynciw also misappropriated and transferred unlawfully to Entity B furniture that was owned by The Hartford so that Entity B could sell the furniture for profit. YOUNG sold the furniture that Entity B obtained from The Hartford for approximately $2,052,928.

In exchange for Olynciw causing The Hartford to enter into contracts with Entity B for coordinating the delivery and installation of furniture, and misappropriating and transferring unlawfully to Entity B furniture that was owned by The Hartford, YOUNG paid Olynciw at least $207,783.41 in kickbacks in the form of cash, checks, gifts and, at Olynciw's direction, payments to third parties for automobile expenses, housing expenses and other personal expenses.

In addition, for tax years 2001 through 2004, YOUNG failed to report much of the profit that he received from his arrangement with Olynciw on his personal tax returns for taxable years 2001 through 2004.

Judge Covello has scheduled sentencing for September 10, 2009, at which time YOUNG faces a maximum term of imprisonment of 20 years with respect to the mail fraud offense and a maximum term of imprisonment of five years with respect to the tax offense.  In addition, YOUNG faces a maximum fine of as much as $250,000 or twice the gross gain or loss resulting from the offense with respect to each offense.

YOUNG also must pay restitution to The Hartford for the losses  it suffered, which YOUNG has admitted ia at least $587,834.  YOUNG also must pay to the Internal Revenue Service back taxes in the amount of $507,861, plus penalties and interest.

On April 30, 2008, Olynciw was sentenced to 28 months of imprisonment for his participation in this scheme.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service -- Criminal Investigation Division.  The Hartford Insurance Company also assisted in the investigation.  The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone.

CONTACT:

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