Former CFO of Naugatuck Company Charged with Fraud Offenses
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned a six-count indictment yesterday charging JOSEPH NADER, 53, of Torrington, with fraud offenses.
As alleged in the indictment, Nader was the Chief Financial Officer (“CFO”) of a company located in Naugatuck. From approximately 2013 to February 2017, Nader defrauded the company by making false representations to the company’s owners concerning the company’s financial position. He also created a false bank statement depicting a balance of over $185,000 in a company account, when the balance was significantly less, and then provided that false bank statement to an outside accounting firm for preparation of the company’s year-end financial statements. Because Nader misrepresented the company’s financial position, the company issued bonuses to him and other employees in amounts they would not otherwise have received had the true financial position of the company been known.
In addition, the indictment alleges that Nader sent false invoices and pack lists to a customer of the company to reflect products purportedly purchased by the customer, causing the customer to pay more than $100,000 for products that had not been purchased or shipped.
It is also alleged that Nader manipulated the company’s payroll system to cause the company to make excessive payments to him.
The indictment charges Nader with six counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.
This matter has been assigned to U.S. District Judge Michael P. Shea in Hartford. An arraignment date is not scheduled.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Michael McGarry.