United States Attorney's Office District of Connecticut
Press Release

WATERBURY BUSINESS OWNER ADMITS DEFRAUDING CLIENTS OF MORE THAN $1.3 MILLION

Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that THOMAS CIPRIANO, 54, of Waterbury, pleaded guilty today before Senior United States District Judge Peter C. Dorsey in New Haven to one count of mail fraud and one count of money laundering.

According to court documents and statements made in court, CIPRIANO, while acting as principal of the Cipriano Agency, an insurance and financial services agency, and Selective Benefits Group, a financial services agency, both of which conducted business from 751 Watertown Avenue in Waterbury, convinced several clients to remove their money from conventional investments and from their personal bank accounts and to give him the money to “invest” by promising that they would be repaid with interest on their investment.  However, CIPRIANO did not invest his clients’ funds in any sort of legitimate investment.  Instead, he laundered those funds through his personal bank accounts and lost most of the money gambling at Connecticut casinos.  He spent the rest of his clients’ money to pay for his own personal expenses or to make “lulling” payments to other clients.

The Government has calculated that, through these schemes, CIPRIANO defrauded his clients of between $1.3 million and $1.8 million.

Judge Dorsey has scheduled sentencing for January 18, 2010, at which time CIPRIANO faces a maximum term of imprisonment of 30 years a maximum fine of approximately $3 million.  CIPRIANO also will be ordered to pay restitution to the victims of his schemes.

CIPRIANO is detained pending his sentencing.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant United States Attorney Susan Wines.

CONTACT:

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