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DISTRICT OF CONNECTICUT
INDICTMENT
COUNT ONE
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.
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
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
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,
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
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
approximately six voting members who were appointed for five year terms. The Inland/Wetlands
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met approximately once a month to consider applications submitted by persons or entities that
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
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.
9. Among the means and methods employed by BOTTI and Public Official # 1 to further
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and carry out the conspiracy and to effect its unlawful objects were those set forth below in ¶¶ 10
through 44.
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
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
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
deducted these expenses on his federal tax returns for the year 2002 and 2003 and caused these
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
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
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
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
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
23. In or about May 2004, BOTTI provided Public Official # 1 with a check for $8,925
December 2003.
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
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
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,
28. Between on or about June 13, 2006 to on or about June 20, 2006, Public Official # 1
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.
“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
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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
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
33. On or about June 28, 2006, the City of Shelton mailed a certified letter to BOTTI’s
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.
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
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
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approximately $2,000 to Commissioner # 2 for an event BOTTI held at a business owned by
Commissioner # 2.
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
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
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.
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BOTTI advised the witness that if the witness told federal authorities about the money in
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
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
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
(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
(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
(d) On or about November 7, 2002, BOTTI wrote a check to pay a lumber company
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(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 #
(h) In or about May 2005, BOTTI sent an employee to assist Public Official # 1 in
(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
(m) On or about July 14, 2006, BOTTI made false representations to special agents of
the IRS.
2's business.
(o) In or about December 2006, BOTTI provided gift certificates to two P & Z
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commissioners who voted in favor of the 828 Project.
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COUNT TWO
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
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COUNT THREE
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.
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.
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.
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
Connecticut.
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.
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
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.
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
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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.
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
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DATE AMOUNT FINANCIAL ACCOUNT NUM BER
INSTITUTION
6-19-06 $9,500 NVSL xxxxx2838
TOTAL $49,366
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
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
64. On or about July 14, 2006, BOTTI falsely represented to special agents of the IRS,
(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
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.
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
69. On or about the dates set forth below, BOTTI and conspirator caused the following
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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:
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
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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
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
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
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:
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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.
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
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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