Department of Justice Logo

United States Attorney's Office District of Connecticut
Press Release

April 29, 2011


David B. Fein, United States Attorney for the District of Connecticut, announced that GENARO R. HATHAWAY, 46, of Weston, pleaded guilty today before United States District Judge Mark R. Kravitz in New Haven to two counts of conspiracy and one count of tax evasion.  The charges stem from mortgage fraud schemes in which HATHAWAY participated.

According to court documents and statements made in court, HATHAWAY conspired with his husband, Steve Kottage, to commit wire fraud by making materially false statements to  H&R Block Home Mortgage, Inc., including failing to disclose the existence of a previous mortgage with Wells Fargo, and misrepresenting HATHAWAY’s income.  In addition, HATHAWAY admitted that he conspired to commit bank fraud by submitting a materially false loan application to Washington Mutual to refinance a condominium in Hillsboro Beach, Florida.  A co-defendant, Mary Ellen Durso, served as the straw owner for the condo in order to obtain the fraudulent loan proceeds for the benefit of HATHAWAY and Kottage.  Through both schemes, HATHAWAY and Kottage defrauded Wells Fargo and Washington Mutual of more than $600,000.

HATHAWAY also willfully failed to report on his 2005 federal tax return $581,126.93 in fraudulent loan proceeds, resulting in a tax loss to the government of $168,341.

Judge Kravitz has scheduled sentencing for July 18, 2011, at which time HATHAWAY faces a maximum term of imprisonment of 30 years on each count of conspiracy, and a maximum term of imprisonment of five years on the tax evasion count.  He also will be ordered to pay restitution in the amount of at least $616,547.93, and back taxes, penalties and interest to the Internal Revenue Service.

On April 21, Kottage pleaded guilty to two counts of conspiracy.  He awaits sentencing.

On December 14, 2010, Durso pleaded guilty to one count of conspiracy and five counts of filing false tax returns.  On March 9, 2011, she was sentenced to three years of probation, the first six months of which she must serve in home confinement.

This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant United States Attorney David T. Huang and Senior Litigation Counsel Richard J. Schechter.

In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut.  Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an email to

The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit




Tom Carson
(203) 821-3722





Home Privacy Policy Legal Policies and DisclaimersUSAO HomepageDepartment of JusticeUSA.govProject Safe NeighborhoodsPSN