Waterford Woman Charged with Fraud and Theft from Addiction and Mental Health Services Nonprofit

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging MICHELE DEVINE, 49, of Waterford, with fraud and theft offenses in connection with her role as the former executive director of the Southeastern Regional Action Council on Substance Abuse, Inc.

The indictment was returned on July 26.  Devine appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford, entered a plea of not guilty, and was released on a $25,000 bond.

As alleged in the indictment and statements made in Court, the Southeastern Regional Action Council on Substance Abuse, Inc. (“SERAC”), headquartered in Norwich, is a 501(c)(3) organization that serves 41 towns in southeastern and northeastern Connecticut with substance abuse, problem gambling, and mental health related services.  SERAC is primarily funded through hundreds of thousands of dollars in state and federal grants from the State of Connecticut’s Department of Mental Health and Addiction Services, and the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration.

Devine was the executive director of SERAC until July of 2022.  In that role, Devine is alleged to have spent thousands of dollars on purchases that did not relate SERAC but instead appear to be personal expenses for Devine and her family.  These charges include thousands of dollars spent on home appliances; a trip to the Canyon Ranch luxury spa in the Berkshires, Massachusetts; timeshare fees at the Water’s Edge resort; and purchases at Marshalls, Target, Amazon, Best Buy, Etsy, and scrapbooking/crafting websites.

The indictment charges Devine with nine counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count, and two counts of theft from an agency receiving federal funds, an offense that carries a maximum term of imprisonment of 10 years on each count.

U.S. Attorney Avery 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 matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General, with the assistance of the New London State’s Attorney’s Office and the State of Connecticut Office of the Attorney General.  The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.