Botti James Indictment

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT GRAND JURY N-06-05 UNITED STATES OF AMERICA : : v. : : JAMES BOTTI :

Criminal No. VIOLATIONS: 18 U.S.C. § 371 [Conspiracy to Defraud] 18 U.S.C. § 666 [Bribery of a Public Official] 18 U.S.C. § 1341, 1346 [Mail Fraud] 18 U.S.C. § 371 [Conspiracy to Structure] 31 U.S.C. § 5324 [Structuring] 18 U.S.C. § 1001 [False Statements] 31 U.S.C. § 5317 [Criminal Forfeiture] INDICTMENT

The Grand Jury charges: COUNT ONE (Conspiracy to Defraud the Citizens of Shelton, Connecticut) The Defendant and his Coconspirator 1. At all times relevant to this Indictment, JAMES BOTTI (“BOTTI”), the defendant herein, was a resident of Shelton, Connecticut. BOTTI owned and operated companies that provided construction services, developed commercial sites, and leased buildings to third parties. As a developer, BOTTI routinely sought approval from public commissions in Shelton. 2. At all times relevant to this Indictment, an elected public official known to the Grand Jury (hereinafter identified as “Public Official # 1") was a resident of Shelton. Public Official # 1 was BOTTI’s co-conspirator but is not named as a defendant herein. Public Official # 1 owed a duty of loyalty and honest services to the citizens of Shelton, Connecticut in the performance of his public duties, free from deceit, favoritism, bias, conflict of interest and self-enrichment.

Public Official # 1 was an agent of a local government, the City of Shelton, authorized to act on behalf of the government of Shelton. 3. At all times relevant to this Indictment, the City of Shelton received federal funds. For each of the fiscal years ending June 30 from 2002 through 2007, Shelton received more than $10,000 under a Federal program involving a grant, contract, subsidy, loan, guarantee, insurance or other form of Federal assistance. 4. At all times relevant to this Indictment, the citizens of Shelton were entitled to receive honest services from their elected and appointed officials, free from deceit, favoritism, bias, conflict of interest and self-enrichment. The Shelton Commissions 5. At all times relevant to this Indictment, the City of Shelton utilized a Planning and Zoning Commission to determine land use decisions that were in the best interest of the citizens of Shelton. The commission (hereafter “P & Z”) consisted of six voting members who were elected by the citizens of Shelton every two years. The P & Z conducted regular meetings on the second Tuesday of each month and special meetings, if necessary, were conducted on the fourth Tuesday of each month. The P & Z considered applications submitted by persons or entities that sought land use decisions. 6. At all times relevant to this Indictment, the City of Shelton utilized an Inland/Wetlands Commission to determine land use decisions for the protection, preservation, maintenance and use of the Inland Wetlands and Watercourses that were in the best interest of the citizens of Shelton. The commission (hereafter “Inland/Wetlands”) consisted of approximately six voting members who were appointed for five year terms. The Inland/Wetlands 2

met approximately once a month to consider applications submitted by persons or entities that sought decisions affecting the environment. The Conspiracy to Defraud the Citizens of Shelton 7. From in or about January 2002 until on or about the date of this Indictment, in the District of Connecticut and elsewhere, JAMES BOTTI, the defendant herein, knowingly and willfully conspired and agreed with Public Official # 1 and others known and unknown to the Grand Jury to commit offenses against the United States, namely to devise a scheme and artifice to obtain money, and property, and to defraud the citizens of Shelton of the intangible right to the honest services of Public Official # 1 and other public officials, free from deceit, favoritism, bias, conflict of interest, and self enrichment, by means of materially false and fraudulent pretenses, representations, and promises, utilizing and causing the United States mails to be used for the purpose of executing that scheme and artifice, contrary to Title 18, United States Code, Sections 1341 and 1346. The Principal Goals of the Conspiracy 8. The principal goals of the conspiracy were for BOTTI: (a) to provide Public Official # 1 with money and other benefits in an effort to induce Public Official # 1 to use his influence to help BOTTI obtain approval from the Shelton commissions on his land use applications; (b) to reward Public Official # 1 for using his position to further BOTTI’s financial interests; (c) to affirmatively conceal his corrupt acts, and the benefits he provided to Public Official # 1; and (d) to deprive the citizens of Shelton of the honest services of its elected and appointed officials. The Manner and Means of the Conspiracy 9. Among the means and methods employed by BOTTI and Public Official # 1 to further 3

and carry out the conspiracy and to effect its unlawful objects were those set forth below in ¶¶ 10 through 44. BOTTI Provides Benefits to Public Official # 1 By Paying for Materials and Contractors at Public Official # 1's Residence 10. In or about 2002, BOTTI sought to provide Public Official # 1 with construction services and materials at Public Official # 1's residence free of charge. BOTTI caused merchants who provided materials used at Public Official # 1's residence to send the bills to BOTTI. During 2002, BOTTI paid other contractors and a merchant for labor and materials used to provide construction services at Public Official # 1's residence. 11. In or about October 2002, BOTTI sought to conceal the fact that he was providing a benefit to Public Official when BOTTI paid a contractor for work performed at Public Official # 1's residence. Rather than pay the contractor directly, BOTTI caused another person to write a check made out to the contractor. One week later, BOTTI wrote a check to this other person to cover the check written by the other person to the contractor. 12. In an effort to conceal the fact that BOTTI was providing a benefit to Public Official # 1, BOTTI caused payments made for the benefit of Public Official # 1 to be charged as business expenses of BOTTI’s construction project at another location. Thereafter, BOTTI deducted these expenses on his federal tax returns for the year 2002 and 2003 and caused these returns to be mailed to the Internal Revenue Service (“IRS”). 13. In or about October 2003, BOTTI caused a check to be sent to pay a merchant that provided materials used for the construction project in 2002 at Public Official # 1's residence. 14. In or about December 2003, allegations appeared in the press that the Governor of

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Connecticut had accepted benefits from contractors seeking business with the State of Connecticut. At or about that time, BOTTI represented that what the Governor did was nothing compared to what was done at Public Official #1's residence. 15. From in or about 2002 to in or about January 2004, BOTTI attempted to cover up the fact that he had provided benefits to Public Official # 1 in 2002 and 2003. BOTTI directed an employee of his business to back date a letter to Public Official # 1 regarding the services provided to Public Official # 1. BOTTI directed the employee not to mail the letter to Public Official # 1. 16. In or about January 2004, Public Official # 1 provided BOTTI with a check for $19,654 to pay for services rendered in 2002. BOTTI Expects the Benefits he Provides to Public Official # 1 will Result in Favorable Treatment for BOTTI and his Construction Projects 17. From in or about 2002 to 2006, BOTTI provided Public Official # 1 with favors and benefits when Public Official # 1 made requests to BOTTI. BOTTI provided Public Official # 1 with the benefits and favors without charge. BOTTI expected that the benefits he provided to Public Official # 1 would result in favorable treatment for BOTTI and his construction projects. 18. In or about October 2003, BOTTI represented that Public Official # 1 would not interfere with a project BOTTI was building on Bridgeport Avenue in Shelton (hereafter “Crown Point Project”) because Public Official # 1 owed BOTTI money. 19. In or about December 2003, BOTTI sought to obtain approval from the Inland/Wetlands commission in Shelton regarding his Crown Point Project. In an effort to obtain this approval, BOTTI had discussions with an Inlands/Wetlands commissioner whereby BOTTI

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would receive approval from the commission in exchange for BOTTI using his influence with Public Official # 1 to help the Inlands/Wetlands commissioner. Public Official # 1 advised BOTTI that he would get a favorable vote for BOTTI from Inlands/Wetlands. 20. In or about December 2003, BOTTI represented that if Public Official # 1 or any other public official tried to interfere with BOTTI, BOTTI would expose the corrupt activities of “17 developers and a good chunk of town hall” in Shelton. BOTTI also represented that he could cause the Federal Government to “collapse the town hall.” As BOTTI explained “I can do that.” 21. In or about January 2004, BOTTI represented that he had an understanding with Public Official # 1 that no one would be delaying his Crown Point project. 22. In or about March 2004, BOTTI received approval from Inland/Wetlands regarding his Crown Point project. 23. In or about May 2004, BOTTI provided Public Official # 1 with a check for $8,925 for services purportedly rendered by a business owned by Public Official # 1 to BOTTI in December 2003. BOTTI’s Application to the P & Z Commission Regarding 828 Bridgeport Avenue 24. In or about early 2006, BOTTI filed application # 06-14 with P & Z to obtain special exception approval to construct two restaurants and a bank at 828 Bridgeport Avenue, Shelton (hereafter the “828 Project”). 25. On or about May 15, 2006, BOTTI signed a contract to purchase 828 Bridgeport Avenue for $4.0 million dollars. Pursuant to the contract, BOTTI had 60 days to close on the

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purchase. 26. In or about May 2006, BOTTI directed employees and persons affiliated with his business to attend a public hearing before P & Z and speak in favor of BOTTI’s application without disclosing their affiliation with BOTTI. 27. At a June 13, 2006 P & Z meeting, P & Z preliminarily indicated by a 4 to 2 vote that the application would not be granted. In an effort to obtain a favorable ruling from P & Z, BOTTI contacted Public Official # 1. In order to induce Public Official # 1 to support the project and to use his influence with P & Z, and to reward Public Official # 1 for doing so, BOTTI provided Public Official # 1 with a monetary benefit. 28. Between on or about June 13, 2006 to on or about June 20, 2006, Public Official # 1 contacted a P & Z commissioner (hereafter “commissioner # 1"). Commissioner # 1 advised Public Official # 1 that based on the June 13, 2006 P & Z meeting, it did not appear that the 828 Project application would be approved. Public Official # 1 requested commissioner # 1 to: (a) obtain the necessary votes from P & Z to approve the 828 Project; and (b) place the 828 Project application on the June 20, 2006 P & Z agenda so that it could be approved at the June 20, 2006 meeting. 29. Pursuant to the instructions given to Commissioner # 1 by Public Official # 1, Commissioner #1 contacted two P & Z commissioners (hereafter “Commissioner # 2" and “Commissioner # 3") and attempted to convince these commissioners to vote in favor of the 828 Project. 30. On or about June 20, 2006, BOTTI directed another P & Z commissioner (hereafter “Commissioner # 4") to approach Commissioner # 2 and request that Commissioner # 2 attend 7

the June 20, 2006 P & Z meeting and vote in favor of the project. Commissioner # 4, who had received constructions service from BOTTI without charge, did direct Commissioner # 2 to attend the meeting and to vote in favor of the 828 Project. 31. On or about June 20, 2006, P & Z voted in favor of the 828 Project by a vote of 4 to 2. 32. On or about June 22, 2006, BOTTI received a commitment letter from a financial institution that required BOTTI to produce a Certificate of Zoning Compliance concerning the 828 Project before BOTTI received financing. 33. On or about June 28, 2006, the City of Shelton mailed a certified letter to BOTTI’s representative advising BOTTI that P& Z had approved application # 06-14. 34. In or about July 2006, BOTTI obtained approval for $6.5 million in financing from a financial institution to purchase 828 Bridgeport Avenue and perform site development work at the property. In order to obtain this financing, BOTTI presented the financial institution with the June 28, 2006 letter from P & Z approving the 828 Project. BOTTI Provides Things of Value to Public Officials For Their Assistance 35. In or about 2006, BOTTI maintained hundreds of thousands of dollars in his office safe. In an effort to induce Public Official # 1 to use his official position to take actions to help BOTTI and to reward Public Official # 1 for doing so, BOTTI permitted Public Official # 1 to take cash from BOTTI’s office safe. 36. Subsequent to the P & Z vote on the 828 Project, BOTTI provided two of the commissioners who voted in favor of the project with a monetary reward in the form of a gift certificate. BOTTI also provided a gift certificate to Commissioner # 4 and provided 8

approximately $2,000 to Commissioner # 2 for an event BOTTI held at a business owned by Commissioner # 2. BOTTI Conceals Cash from the IRS and Federal Authorities 37. Beginning in or about June 2006, BOTTI sought to conceal from the IRS and federal law enforcement authorities the cash that he maintained in his office and used for the corrupt purposes described in this Indictment. 38. From in or about June 2006 to the date of this Indictment, BOTTI concealed the cash by structuring bank transactions, and causing other persons to structure bank transactions, in an effort to prevent financial institutions from filing required forms with the IRS that would reveal the existence of the cash. 39. On or about July 14, 2006, BOTTI falsely represented to Special Agents of the IRS that: (a) he had no cash, other than the cash in his pocket, and less than $5,000 at year end whereas in truth, BOTTI had hundreds of thousands of dollars in cash; and (b) all rents that he received from leases were paid by check whereas in truth, BOTTI received rent of more than $35,000 dollars in cash from a tenant. 40. On or about July 14, 2006, at or about the time BOTTI was being interviewed by Special Agents of the IRS, a person associated with BOTTI removed cash from BOTTI’s office in an effort to hide the cash from the IRS and federal law enforcement authorities. 41. In or about June 2007, BOTTI was informed by federal law enforcement authorities that he was under criminal investigation. After being so advised, BOTTI sought to intimidate and confront a witness in the investigation by approaching the witness in or about August 2007. 9

BOTTI advised the witness that if the witness told federal authorities about the money in BOTTI’s safe, BOTTI and another person were looking at jail. 42. In or about 2007, BOTTI paid a contractor who did construction work on BOTTI’s home with approximately $65,000 in cash and directed the contractor not to disclose the fact that BOTTI had paid him in cash. 43. In or about September 2008, BOTTI advised the contractor referenced in paragraph 42 that federal agents were seeking to obtain information from persons in Shelton as part of a federal investigation. BOTTI directed the contractor not to disclose to the federal agents the fact that BOTTI had paid the contractor cash. Overt Acts in Furtherance of the Conspiracy 44. In furtherance of the conspiracy and to accomplish its unlawful objects, defendant BOTTI and his coconspirator Public Official # 1 committed and caused to be committed the overt acts set forth in ¶¶ 10 through 43 and 44 (a) through (o), in the District of Connecticut and elsewhere on or about the dates set forth therein. (a) In or about April 2002, BOTTI paid a framer who performed work at the residence of Public Official # 1. (b) On or about October 4, 2002, BOTTI caused another person to write a check to a contractor who performed work at the residence of Public Official # 1. (c) On or about October 12, 2002, BOTTI wrote a check to the person in paragraph 44(b) to reimburse the person for providing the check to a contractor who performed worked at the residence of Public Official # 1. (d) On or about November 7, 2002, BOTTI wrote a check to pay a lumber company 10

(Lumber Company # 1) that provided lumber that was used to perform work at the residence of Public Official # 1. (e) On or about December 9, 2002, BOTTI created an invoice that purported to bill Public Official # 1 for lumber supplied by a lumber company (Lumber Company # 2). (f) On or about October 10, 2003, BOTTI caused a check to be issued to pay Lumber Company # 2 for lumber that was used to perform work at the residence of Public Official # 1. (g) On or about May 26, 2004, BOTTI caused a check to be written to Public Official # 1's business to pay for services purportedly rendered in December 2003. (h) In or about May 2005, BOTTI sent an employee to assist Public Official # 1 in response to Public Official # 1's request for labor assistance. (i) In or about early 2006, BOTTI requested another person to cash a check and provide BOTTI with the cash to enable BOTTI to give cash to Public Official # 1. (j) In or about April 2006, BOTTI claimed in a personal financial statement provided to a financial institution that he had $3.4 million in “cash on hand, checking and Savings & Bonds.” (k) In or about June 2006, BOTTI provided Public Official #1 with a monetary payment. (l) On or about June 19, 2006, BOTTI advised a financial institution that he would obtain approval of his application on the 828 Project on June 20, 2006. (m) On or about July 14, 2006, BOTTI made false representations to special agents of the IRS. (n) In or about December 2006, BOTTI caused checks to be written to Commissioner # 2's business. (o) In or about December 2006, BOTTI provided gift certificates to two P & Z 11

commissioners who voted in favor of the 828 Project. All in violation of Title 18, United States Code, Section 371.

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COUNT TWO (Bribery of Public Official # 1) 45. The allegations set forth in ¶¶ 1 through 6 and 8 through 44 of Count One of this Indictment are hereby realleged and incorporated as though set forth in full herein. 46. In or about June 2006, in the District of Connecticut, and elsewhere, JAMES BOTTI, the defendant herein did knowingly and corruptly give, offer, and agree to give things of value to Public Official # 1, an agent of a local government, intending to influence and reward Public Official # 1 in connection with a business, transaction and series of transactions of the City of Shelton, and the P & Z commission involving a thing of value of $5,000.00 and more, by providing money to Public Official # 1 to influence Public Official # 1 to use his position and authority to assist BOTTI to obtain approval from P & Z of application # 06-14 concerning the 828 Project and to reward Public Official # 1 for doing so. In violation of Title 18, United States Code, Section 666(a)(2).

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COUNT THREE (Scheme to Obtain Money and Property and to Defraud Shelton Citizens of the Right to Honest Services by Mail Fraud) 47. The allegations set forth in ¶¶ 1 through 6 and 8 through 44 of Count One of this Indictment are hereby realleged and incorporated as though set forth in full herein. 48. From in or about 2002 to in or about July 2006, in the District of Connecticut and elsewhere, JAMES BOTTI, the defendant herein, knowingly and willfully and with intent to defraud devised and intended to devise a scheme and artifice to obtain money and property and to defraud the citizens of Shelton of the intangible right to the honest services of Public Official # 1 and other public officials, free from deceit, favoritism, bias, conflict of interest, and self enrichment by means of materially false and fraudulent pretenses, representations and promises, which scheme and artifice is in substance as set forth in paragraphs 8 through 44 of Count One of this Indictment. The Execution of the Scheme and Artifice 49. On or about June 28, 2006, for the purpose of executing the above scheme and artifice and attempting to do so, at Shelton, in the District of Connecticut and elsewhere, JAMES BOTTI knowingly and willfully caused to be delivered by United States certified mail according to the direction thereon an envelope containing P & Z’s approval of the 828 Project. In violation of Title 18, United States Code, Sections 1341 and 1346.

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COUNT FOUR (Conspiracy to Structure) 50. The allegations set forth in ¶¶ 1 through 6 and 8 through 44 of Count One of this Indictment are hereby realleged and incorporated as though set forth in full herein. Botti’s Financial Institution Accounts 51. At all time relevant to this Indictment, BOTTI maintained a corporate checking account at Naugatuck Valley Savings and Loan (“NVSL”) at 504 Bridgeport Avenue in Shelton, Connecticut and a personal bank account at Sikorski Federal Credit Union (“Sikorski”) in Stratford, Connecticut. BOTTI’s family member also had a Discover credit card account. BOTTI Conspires With Another Person to Hide the Existence of Cash from the IRS 52. At all times relevant to this Indictment, BOTTI utilized another person to help him structure cash transactions and hide the existence of cash from the IRS and federal law enforcement authorities. This other person, who is a conspirator of BOTTI for the criminal activity set forth in Count Four of this Indictment, is not named as a defendant herein. This other person (hereafter “conspirator”), maintained a checking account at NVSL at 504 Bridgeport Avenue in Shelton, Connecticut. On or about November 2, 2006, conspirator opened another checking account at Webster Bank (“Webster”) at 375 Bridgeport Avenue in Shelton, Connecticut. Regulations Concerning Cash Transactions 53. At all times relevant to this Indictment, Title 31, United States Code, Section 5313(a), and the regulations promulgated by the Secretary of the Treasury, required domestic

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financial institutions, such as NVSL, Webster, Sikorski and Discover, to file a report of cash transactions in excess of $10,000. These reports were known as Currency Transaction Reports (“CTRs”). These reports were provided to the IRS and were available to federal law enforcement authorities. The Conspiracy to Structure Cash Transactions 54. From in or about June 2006 until in or about the date of this Indictment, in the District of Connecticut and elsewhere, JAMES BOTTI, the defendant herein, knowingly and willfully conspired and agreed with conspirator to commit an offense against the United States, namely, to evade the reporting requirements of section 5313(a) of Title 31, United States Code, and the regulations promulgated thereunder, by structuring, assist in structuring, and attempt to structure and assist in structuring, transactions with domestic financial institutions contrary to Title 31, United States Code, Sections 5324(a)(3) and 5324(d). The Principal Goal of the Conspiracy 55. The principal goal of the conspiracy was for BOTTI and conspirator to use large sums of cash without the existence of the cash being detected by the IRS and federal law enforcement authorities. The Manner and Means of the Conspiracy 56. Among the means and methods employed by BOTTI and conspirator to carry out the conspiracy and to effect its unlawful objects were those set forth in ¶¶ 57 through 69 below. 57. From in or about June 2006 through in or about January 2007, BOTTI and conspirator structured, and caused the structuring of, cash transactions at financial institutions in amounts less than $10,001 with the intention of evading the requirement that the financial 16

institutions file CTRs. 58. BOTTI and conspirator repeatedly deposited, and caused other persons to deposit, cash in the amount of $9,500, $9,000 and other amounts less than $10,001 at various financial institutions with the intention of evading the requirement that financial institutions file CTRs. 59. After cash was deposited by conspirator or other persons into bank accounts in the name of the conspirator, the cash was distributed by check for the benefit of BOTTI, to an account controlled by BOTTI, or to a person associated with BOTTI. This procedure was designed to create the false impression that BOTTI did not have cash or access to cash. 60. From June 2006 to the date of this Indictment, BOTTI sought to conceal the existence of cash from the IRS and federal law enforcement authorities. Defendant Structures Cash Deposits into His Accounts 61. On or about the dates and times set forth below, at the financial institutions set forth below, BOTTI, structured, and caused to be structured, almost $50,000 of cash in the amounts set forth below:

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DATE

AMOUNT

FINANCIAL INSTITUTION

ACCOUNT NUM BER

6-19-06

$9,500

NVSL

xxxxx2838

6-21-06

$9,500

NVSL

xxxxx2838

6-28-06

$7,500

NVSL

xxxxx2838

7-1-06

$5,000

SIKORSKI

xxx-xx-1540

7-1-06

$8,000

DISCOVER

xxxxxxxxxxxx6775

7-1-06

$3,866

DISCOVER

xxxxxxxxxxxx6775

7-7-06

$6,000

SIKORSKI

xxx-xx-1540

TOTAL

$49,366

Conspirator Structures Cash Transactions 62. On or about the dates and times set forth below, at the financial institutions set forth below, conspirator structured, and caused to be structured, almost $100,000 of cash in the amounts set forth below: DATE

CASH AMOUNT

TIM E OF DEPOSIT

LOCATION OF CASH DEPOSITS

ACCOUNT NUMBER

6-20-06

$9,000

NVSL

xxxxx3374

7-7-06

$9,500

NVSL

xxxxx3374

7-10-06

$9,000

NVSL

xxxxx3374

10-14-06

$3,800

NVSL

xxxxx3374

11-01-06

$9,500

NVSL

xxxxx3374

11-2-06

$9,500

12:51 p.m.

W ebster

xxxxxx0783

11-2-06

$9,500

1:21 p.m.

NVSL

xxxxx3374

11-16-06

$9,500

9:15 a.m.

W ebster

xxxxxx0783

11-16-06

$9,500

10:06 a.m.

NVSL

xxxxxx3374

11-28-06

$9,500

11:11a.m.

W ebster

xxxxxx0783

11-28-06

$9,500

12:55 p.m.

NVSL

xxxxx3374

TOTAL

$97,800

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BOTTI Conceals Cash from the IRS 63. On or about July 1, 2006, BOTTI’s family member paid a credit card bill in excess of $10,000 by making two cash payments to the credit card company on the same day, each payment being less than $10,000. 64. On or about July 14, 2006, BOTTI falsely represented to special agents of the IRS, Criminal Investigation Division, that: (a) he had only the cash that was in his pocket and less than $5,000 in cash at year end; and (b) all rents that he received from leases were paid by check. 65. On or about July 14, 2006, BOTTI’s conspirator removed large sums of cash from BOTTI’s office. 66. In or about 2007, BOTTI paid a contractor approximately $65,000 in cash and directed the contractor not to disclose the cash payment. 67. In or about September 2008, BOTTI directed the contractor in paragraph 66 not to disclose the cash payment to federal law enforcement authorities who were conducting an investigation in Shelton. Overt Acts in Furtherance of the Conspiracy 68. In furtherance of the conspiracy and to accomplish its unlawful objects, defendant BOTTI and conspirator committed and caused to be committed the overt acts set forth in ¶¶ 61 through 67 and 69(a) through (j), in the District of Connecticut and elsewhere on or about the dates set forth therein. 69. On or about the dates set forth below, BOTTI and conspirator caused the following 19

checks to be written or transfers to be made for the benefit of defendant BOTTI from the accounts in conspirator’s name that had received the structured cash transactions: OVERT ACT

DATE

CHECK AM OUNT OR TRANSFER AMOUNT

a

6-20-06

$10,000

b

6-28-06

$ 6,000

c

7-12-06

$18,500

d

10-13-06

$3,800

e

10-31-06

$1,500

f

11-3-06

$2,600

g

11-16-06

$5,000

h

11-17-06

$20,000

I

11-28-06

$10,000

j

1-19-07

$15,000

TOTAL

$92,400

All in violation of Title 18, United States Code, Section 371.

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COUNT FIVE (Structuring) 70. The allegations set forth in ¶¶ 1 through 6 and 8 through 44 of Count One and ¶¶ 51 through 53 and 55 through 69 of Count Four of this Indictment are hereby realleged and incorporated as though set forth in full herein. 71 From in or about June 2006 through in or about the date of this Indictment, in the District of Connecticut and elsewhere, JAMES BOTTI, the defendant herein, did knowingly and for the purpose of evading the reporting requirements of section 5313(a) of Title 31, United States Code, and the regulations promulgated thereunder, structure, assist in structuring, and attempt to structure and assist in structuring, transactions with domestic financial institutions. In violation of Title 31, United States Code, Sections 5324(a)(3) and 5324(d).

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COUNTS SIX AND SEVEN (False Statements to the IRS) 72. The allegations set forth in ¶¶ 1 through 6 and 8 through 44 of Count One and ¶¶ 51 through 53 and 55 through 69 of Count Four of this Indictment are hereby realleged and incorporated as though set forth in full herein. 73. On or about July 14, 2006, in the District of Connecticut, in a matter within the jurisdiction of the IRS, a department of the United States, JAMES BOTTI, the defendant herein, did knowingly and willfully make materially false, fictitious and fraudulent statements and representations to Special Agents of the IRS Criminal Investigation Division as set forth below: Count

Nature of False Statement

Count Six

That BOTTI had no cash and less than $5,000 in cash at any time during the year whereas in truth, BOTTI had hundreds of thousands of dollars in cash.

Count Seven

That all rents that were paid to BOTTI were paid by check whereas in truth, BOTTI received more than $35,000 in cash as rent from a tenant.

All in violation of Title 18, United States Code, Section 1001(a)(2).

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FORFEITURE ALLEGATION Upon conviction of the offense alleged in Counts Four and Five of this Indictment, JAMES BOTTI, the defendant herein, shall forfeit to the United States of America pursuant to Title 31, United States Code, Section 5317(c)(1), all property involved in the offense, and all property traceable thereto, including, but not limited to, a money judgment in the amount of $147,166. If any of the above-described forfeitable property, as a result of any act or omission of the defendant, cannot be located upon the exercise of due diligence, has been transferred, sold to, or deposited with a third party, has been placed beyond the jurisdiction of the court, has been substantially diminished in value, or had been commingled with other property which cannot be divided without difficulty, it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 18, United States Code, Section 982(b), to seek forfeiture of any other property of said defendant up to the value of the forfeitable property described above.

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All in accordance with Title 31, United States Code, Section 5317(c)(1), and Rule 32.2(a) of the Federal Rules of Criminal Procedure.

A TRUE BILL _____________________________ FOREPERSON

____________________________________ NORA R. DANNEHY ACTING UNITED STATES ATTORNEY ____________________________________ ALINA REYNOLDS SUPERVISORY ASSISTANT UNITED STATES ATTORNEY ____________________________________ RICHARD J. SCHECHTER SENIOR LITIGATION COUNSEL

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