July 3, 09

NEWS / Meriden Attorney Sentenced to Two Years in Federal

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that SEBASTIAN S. CIARCIA, 56, of Meriden, formerly of Avon, was sentenced today by United States District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by two years of supervised release, for his participation in a bribery and tax fraud scheme. On February 27, 2009, CIARCIA pleaded guilty to one count of bribery of a public official, and one count of aiding and assisting in the preparation of a false tax return.

According to documents filed with the Court and statements made in court, CIARCIA was an attorney licensed to practice law in the State of Connecticut, and Escarnio Construction, LLC (“Escarnio Construction”) and Fischer Supply, LLC (“Fischer Supply”) were the names of entities through which CIARCIA conducted business with the United States Department of Veterans Affairs (“VA”). Beginning in approximately May 2002, CIARCIA gave things of value to Kevin Malarney, a VA employee, in exchange for Malarney recommending and steering VA contracts for services and supplies to Escarnio Construction and Fischer Supply. CIARCIA paid Malarney’s personal expenses, including auto loan payments, student loans, various insurance policy payments and trips to St. Maarten and New York. The value of the bribes given by CIARCIA to Malarney was approximately $45,600.42. Between May 2002 and August 2005, Malarney assisted in the awarding of 27 VA contracts worth approximately $303,000 to CIARCIA’s companies. Malarney also directly authorized or caused to be authorized 48 payments in the total amount of approximately $81,000 to Fischer Supply for services and/or supplies on his government purchase card.

CIARCIA managed and controlled Escarnio Construction and Fischer Supply, even though Janet Escarnio is listed as the principal and owner of both companies. CIARCIA has admitted that he assisted in the preparation of Janet Escarnio’s individual federal income tax returns for business income received by the companies for the 2003, 2004 and 2005 calendar years. The returns were fraudulent because the Schedule C’s of both companies under-reported the gross receipts of the companies for these years, causing a tax loss of approximately $18,000. On June 20, 2007, Malarney pleaded guilty to one count of bribery of a public official, and one count of filing a false federal tax return. He awaits sentencing.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division; the Department of Veterans Affairs, Office of Inspector General; the Unites States General Services Administration, Office of Inspector General; the Federal Bureau of Investigation, and the VA Police Service. The case is being prosecuted by Assistant United States Attorneys Douglas P. Morabito and William M. Brown.

Tags: us ins, document, criminal investigation,