Silent Partner of Danbury-Based Trash Hauling Companies Sentenced to Federal Prison

Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that THOMAS MILO, 72, of Mamaroneck, New York, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 15 months of imprisonment, followed by three years of supervised release. Judge Burns also ordered MILO to pay a fine in the amount of $40,000. On February 19, 2008, MILO pleaded guilty to one count conspiring to launder money.

According to court documents and statements made in court, MILO has admitted that he was a silent partner of James Galante’s numerous trash hauling entities operating in Connecticut and Eastern New York, including Automated Waste Disposal (AWD), Diversified Waste Disposal (DWD) and Superior Waste Disposal (SWD). MILO has admitted that, in order to facilitate the operation of these enterprises and their many affiliated companies, he and others agreed to pay approximately $120,000 annually to Matthew Ianniello of New York. From January 2004 to June 2005, approximately every three months, members of this conspiracy withdrew $30,000 from a DWD bank account and placed the cash in an envelope that was given to a co-conspirator at 307 White Street, Danbury, Connecticut. The courier would deliver the money to Ianniello or his representative in New York.

In addition to the term of imprisonment and fine imposed today, MILO and his spouse, who is not a defendant to this action but who owned a 40 percent share in AWD, DWD and SWD and many affiliated companies, agreed to forfeit the entirety of their interests to the United States, less outstanding shareholder loans to the company. In this regard, MILO has guaranteed that a forfeiture sale will net the United States at least $5 million.

Thirty-three individuals, including MILO, Galante, and Ianniello, have pleaded guilty to various federal charges stemming from a long-term investigation into the waste-hauling industry in Connecticut and eastern New York. Galante and Ianniello each pleaded guilty to charges stemming from their participation in this conspiracy.

On September 3, 2008, Galante was sentenced to 87 months of imprisonment. In addition, Galante 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. Galante also was ordered to pay a fine in the amount of $100,000, and approximately $1.6 million in back taxes to the Internal Revenue Service.

On May 9, 2007, Ianniello was sentenced to 24 months of imprisonment. Ianniello also was ordered to pay a fine in the amount of $6,000 and restitution of $277,970.90. He also forfeited $130,680 in cash that was seized by Connecticut law enforcement officials during a search of his residence in July 2005.

This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, the United States Department of Labor, Office of Inspector General and the Connecticut State Police. Assistant United States Attorneys Michael J. Gustafson, Raymond F. Miller, and Henry K. Kopel are prosecuting these cases.