Home New Haven Press Releases 2009 Former Controller of Danbury Trash Companies is Sentenced
Info
This is archived material from the Federal Bureau of Investigation (FBI) website. It may contain outdated information and links may no longer function.

Former Controller of Danbury Trash Companies is Sentenced

U.S. Attorney’s Office August 11, 2009
  • District of Connecticut (203) 821-3700

Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that RONALD ZOLLO, 51, of Highland Mills, New York, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to three years of probation. Judge Burns also ordered ZOLLO to pay a fine in the amount of $25,000. On February 23, 2007, ZOLLO pleaded guilty to one count of conspiring to defraud the Internal Revenue Service and one count of conspiring to commit wire fraud related to the filing of false salary cap reports with the United Hockey League. The charges stem from a long-term investigation into the waste-hauling industry in Connecticut and eastern New York.

According to documents filed with the Court and statements made in court, ZOLLO was employed as the controller for a number of companies formerly owned by James Galante, including Automated Waste Disposal (AWD), Diversified Waste Disposal (DWD), Superior Waste Disposal (SWD) and Transfer Systems, Inc. (TSI). As controller, ZOLLO’s duties included management of the financial operations of the companies and oversight of the payroll and accounting functions.

ZOLLO has admitted that, while employed for James Galante, he participated in a multiple object scheme to defraud the Internal Revenue Service. In part, this scheme involved the preparation of false and fraudulent expense checks that were paid to Galante. ZOLLO directed his staff to prepare these checks and then signed the checks. Further, these monies were deducted as business expenses on corporate tax returns that were signed by ZOLLO. Additionally, ZOLLO knew that a number of no-show employees were paid by trash hauling companies and that the expenses related to these employees, including their salaries, health care costs, expenses associated with the use of free cars, were improperly deducted on the corporate tax returns he signed.

With respect to the wire fraud conspiracy charge, in 2004, the Danbury Trashers were a minor league hockey team, which was owned by Galante and associated with the United Hockey League. In pleading guilty, ZOLLO admitted that he helped the team circumvent the United Hockey League’s $275,000 annual salary cap. ZOLLO admitted that he placed either hockey players or their wives on the payroll of various trash companies as no-show employees and personally delivered the paychecks to the players for their no-show jobs. ZOLLO also facilitated certain players receiving additional unreported compensation in the form of double housing allowance payments. With these supplemented salaries, the Trashers total payroll for the 2004-2005 season was approximately $750,000, exceeding the salary cap by approximately $475,000. Further, in July 2004, ZOLLO wrote a letter on AWD letterhead stating that the wife of a Trashers player had a three-year employment contract with AWD as an assistant sales manager when, in fact, she never worked for AWD.

On June 3, 2008, Galante pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), one count of conspiring to defraud the Internal Revenue Service, and one count of conspiring to commit wire fraud. On September 3, 2008, Galante was sentenced to 87 months of imprisonment. Galante also has forfeited his ownership interests in 25 trash hauling companies, a Southbury residence, six racing cars and a trailer used to haul the racing cars, and $448,153.10 seized from Galante’s business office and his home.

All 33 individuals charged with various offenses as a result of this investigation have pleaded guilty.

This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation Division, the United States Department of Labor, Office of Inspector General, and the Connecticut State Police. The United States Marshals Service, the Drug Enforcement Administration’s Office of Professional Responsibility, and the Connecticut Department of Correction, and the Ansonia, Milford and New Haven police departments have provided critical assistance in the Investigation. Assistant United States Attorneys Michael J. Gustafson, Raymond F. Miller and Henry K. Kopel are prosecuting this case.

This content has been reproduced from its original source.