States Attorney's Office District of Connecticut
|July 22, 2010||
WINSTED MAN PLEADS GUILTY TO ILLEGAL CASH STRUCTURING CHARGE
David B. Fein, United States Attorney for the District of Connecticut, announced today that KARL GAGNON, 43, of Winsted, pleaded guilty today before United States District Judge Christopher F. Droney in Hartford to one count of structuring cash transactions for the purpose of evading the reporting requirements under federal law. Federal law requires that financial institutions file a report with the U.S. Treasury Department for any currency transaction that exceeds $10,000.
According to court documents and statements made in court, GAGNON is a self-employed general contractor doing business as Karl Gagnon Construction. He specializes in residential roofing. Between September 6 and October 6, 2006, GAGNON conducted or caused to be conducted a total of approximately 29 separate cash transactions at various branches of Northwest Community Bank and Webster Bank. GAGNON structured these deposits over the course of 30 days by purchasing treasurer checks in amounts equal to or less than $10,000. GAGNON conducted or caused to be conducted structured cash transactions in the aggregate amount of approximately $278,806.
Judge Droney has scheduled sentencing for October 8, 2010, at which time GAGNON faces a maximum term of imprisonment of 10 years and a fine of up to $500,000.
This matter was investigated by the Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Paul H. McConnell.
U.S. ATTORNEY'S OFFICE
Department of Justice
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