Rhode Island Man Sentenced to 33 Months in Federal Prison for Defrauding the Hartford, Evading Taxes
| U.S. Attorney’s Office November 04, 2009 |
Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that MICHAEL YOUNG, 36, of Coventry, Rhode Island, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 33 months of imprisonment, followed by two years of supervised release, for his participation in a scheme to defraud The Hartford Insurance Company. On June 17, 2009, YOUNG pleaded guilty to one count of mail fraud and one count of tax evasion.
According to court documents and statements made in court, from approximately 2001 through July 2005, YOUNG, while employed by a company that did business with The Hartford Insurance Company (“The Hartford”), conspired with Todd Olynciw, a Project Procurement Manager for The Hartford, to defraud The Hartford. As part of the scheme, YOUNG used a relative’s cleaning business—which did not have any facilities, any warehouse, any vehicles or any employees who delivered or installed furniture—to coordinate the delivery and installation of furniture on behalf of The Hartford, and Olynciw arranged for The Hartford to award more than $3.6 million in contracts to YOUNG and the cleaning business in exchange for personal payments or kickbacks.
YOUNG and Olynciw also stole furniture that was owned by The Hartford and sold the furniture to YOUNG’s employer, who was not aware of the scheme. YOUNG sold furniture obtained from The Hartford, the majority of which he did not pay for, to his employer for more than $2 million.
YOUNG paid Olynciw $207,783.41 kickbacks in the form of cash, checks, gifts and, at Olynciw’s direction, payments to third parties for automobile expenses, housing expenses and other personal expenses.
In addition, for tax years 2001 through 2004, YOUNG failed to report much of the profit that he received from his arrangement with Olynciw on his personal tax returns.
Today, Judge Covello ordered YOUNG to pay restitution in the amount of $792,933 to The Hartford, and $507,861 in back taxes to the Internal Revenue service. YOUNG also must forfeit to the Government an additional $264,311, which he gained from the scheme.
On April 30, 2008, Olynciw was sentenced to 28 months of imprisonment for his participation in this scheme.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division. The Hartford Insurance Company also assisted in the investigation. The case was prosecuted by Assistant United States Attorney Geoffrey M. Stone.