Former Government Employee Sentenced to Federal Prison for Receiving Bribes, Filing False Tax Return

Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that KEVIN J. MALARNEY, 57, of Branford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by two years of supervised release for steering government contracts in exchange for things of value. 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.

According to court documents and statements made in court, in 1991, MALARNEY began working at the United States Department of Veterans Affairs (“VA”) in West Haven, Connecticut, as a plumber. In the late 1990s or 2000, MALARNEY became a contracting officer’s technical representative (COTR). As a COTR, MALARNEY oversaw construction projects for his supervisor. MALARNEY has admitted that, in his role as a COTR, he steered VA construction, maintenance, and supply contracts to Escarnio Construction, LLC and Fischer Supply, LLC, in exchange for things of value from Sebastian Ciarcia, an attorney based in Meriden, who had created the two entities in order to conduct business with the VA. As part of the scheme, 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 total value of the bribes that MALARNEY received from Ciarcia 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.

MALARNEY also admitted that he willfully and knowingly filed a materially false income tax return for the calendar year 2004, as he failed to report to the Internal Revenue Service the illegal payment of personal expenses as income. MALARNEY has been ordered to pay to the Internal Revenue Service back taxes, plus any applicable penalties and interest, for the 2002 through 2005 tax years.

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. On July 1, 2009, Judge Thompson sentenced Ciarcia to 24 months of imprisonment, followed by two years of supervised release.

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