Richard+ +MAYOTTE+Paul+Indictment

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    UNITED STATES DISTRICT COURT

    DISTRICT OF CONNECTICUT

    Grand Jury N-08-3

    UNITED STATES OF AMERICA

    v.

    RICHARD R. GIROUARD,

    PAUL A. MAYOTTE,

    GIROUARD ASSOCIATES, INC., and

    RICHARD GIROUARD ASSOCIATES,

    LLC

    Defendants.

    CRIMINAL NO. _____________

    VIOLATIONS:

    Conspiracy (18 U.S.C. 371)

    Financial Institution Bribery

    (18 U.S.C. 215(a)(1))

    Bank Fraud (18 U.S.C. 1344(1))

    Money Laundering (18 U.S.C. 1957)

    Wire Fraud (18 U.S.C. 1343)

    Forfeiture (18 U.S.C. 982(a)(2)(A))

    Forfeiture (18 U.S.C. 982(a)(1))

    INDICTMENT

    The Grand Jury charges as follows:

    COUNT ONE Conspiracy

    18 U.S.C. 371(Richard R. Girouard, Paul A. Mayotte,

    Girouard Associates, Inc., Richard Girouard Associates)

    General Allegations

    The Defendants and Their Co-Conspirators

    1. At all times relevant to this Indictment, defendant RICHARD R. GIROUARD was a

    real estate developer and home builder in Connecticut.

    2. At all times relevant to this Indictment, defendant PAUL A. MAYOTTE was the Chief

    Financial Officer of GIROUARD ASSOCIATES, INC. and a business confidant of defendant

    RICHARD R. GIROUARD.

    3. At all times relevant to this Indictment, defendant GIROUARD ASSOCIATES, INC.

    (GIROUARD ASSOCIATES) was an entity organized under the laws of the State of

    Connecticut. RICHARD R. GIROUARD was the president and owner of GIROUARD

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    ASSOCIATES, which built custom luxury homes and whose principal place of business was

    located in New Canaan, Connecticut.

    4. At all times relevant to this Indictment, defendant RICHARD GIROUARD

    ASSOCIATES, LLC (Richard Girouard Associates or RGA) was a limited liability company

    organized under the laws of the State of Connecticut. RICHARD R. GIROUARD was the sole

    member of RGA. RGA received and distributed money relating to transactions referred to herein

    as the Borelli Note and LINC Receivables and are discussed further below.

    5. At all times relevant to this Indictment, Kevin J. OKeefe, a co-conspirator who is not

    named as a defendant herein, was a Vice President at Fleet Bank in Hartford, Connecticut, and

    subsequently Bank of America in Hartford after Bank of America acquired Fleet Bank in 2004.

    6. At all times relevant to this Indictment, Paul J. Aparo, a co-conspirator who is not

    named as a defendant herein, was a lawyer. Aparo was a partner in a law firm in Hartford,

    Connecticut. Aparo represented defendants RICHARD R. GIROUARD, GIROUARD

    ASSOCIATES and other entities controlled by GIROUARD in numerous real estate and other

    transactions.

    Other Relevant Entities

    7. Investment Management Associates, LLC (Investment Management Associates or

    IMA) was a limited liability corporation organized under the laws of the State of Connecticut

    on or about October 29, 2001. RICHARD R. GIROUARD was the manager of IMA. RICHARD

    R. GIROUARD and Paul J. Aparo were the members of IMA. IMA was set up for the purpose of

    submitting a bid on distressed loan assets owned by Fleet Bank.

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    8. RRG Investments, LLC (RRG Investments) was a limited liability corporation

    organized under the laws of the State of Connecticut on or about September 20, 2002. RRG

    Investments was set up for the purpose of submitting a bid to Fleet Bank to purchase Fleet Banks

    share of an entity named LINC Receivables 1999 Corporation, which was commonly known

    (and referred to herein) as LINC Receivables. RRG are the initials of defendant RICHARD

    R. GIROUARD. RRG Investments was owned at various times by RICHARD R. GIROUARD

    and GIROUARD ASSOCIATES.

    9. Lexington Associates was the name of a shell company used by Paul J. Aparo and the

    other co-conspirators in connection with the conspiracy. Aparo controlled a bank account under

    the name of Lexington Associates through which RICHARD R. GIROUARD and PAUL A.

    MAYOTTE caused certain proceeds of the conspiracy to be distributed.

    10. AGI Associates, LLC (AGI) was a limited liability corporation organized under the

    laws of the State of Delaware in or about July 2004. AGI was a company set up by RICHARD R.

    GIROUARD and PAUL A. MAYOTTE for the purpose of purchasing an additional portion of

    LINC Receivables owned by Dresdner Bank AG.

    11. At all times relevant to this Indictment, Fleet Bank (including but not limited to Fleet

    National Bank), Bank of America, Sovereign Bank and Webster Bank were financial institutions

    whose deposits were insured by the Federal Deposit Insurance Corporation, and which were

    engaged in, and the activities of which affected, interstate commerce.

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    Certain Relevant Transactions

    12. In the fall of 2001, Fleet Bank wished to sell a number of distressed loan assets and

    put them out for bid. These distressed loan assets were loans that Fleet Bank had made to

    borrowers. Fleet Bank was legally entitled to repayment on the loans from the borrowers. The

    distressed loan assets that Fleet Bank put out for bid in the fall of 2001 included a mortgage

    commonly referred to as the Borelli Note.

    13. Fleet Bank owned approximately 49.12% of an entity known as LINC Receivables.

    LINC Receivables was the owner of certain leases and installment sales contracts which produced

    a stream of revenue that was essentially divided proportionally among LINC Receivables three

    owners: Fleet Bank (49.12%); Dresdner (25.44%); and Prudential (25.44%). Kevin J. OKeefe

    was the officer at Fleet Bank responsible for overseeing Fleet Banks interest in LINC

    Receivables.

    The Conspiracy

    14. Beginning in or about October 2001, and continuing to at least in or about February

    2007, the exact dates being unknown to the Grand Jury, in the District of Connecticut and

    elsewhere, the defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD

    ASSOCIATES, LLC, and RICHARD GIROUARD ASSOCIATES, LLC, did unlawfully,

    willfully and knowingly conspire, combine, confederate and agree with each other and with

    persons known and unknown to the Grand Jury to:

    (a) corruptly give, offer, and promise anything of value to a person with intent to

    influence and reward an officer and employee of Fleet Bank in connection with the

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    business and transactions of Fleet Bank, in violation of Title 18 United States

    Code, Section 215(a)(1);

    (b) execute and attempt to execute a scheme and artifice to defraud Fleet Bank, in

    violation of Title 18, United States Code, Section 1344(1);

    (c) execute and attempt to execute a scheme and artifice to defraud Fleet Bank of the

    honest services of Kevin J. OKeefe in violation of Title 18, United States Code,

    Section 1343 and 1346; and

    (d) engage and attempt to engage in monetary transactions in criminally derived

    property of a value greater than $10,000 and that was derived from specified

    unlawful activity, in violation of Title 18, United States Code, Section 1957(a).

    Purpose of the Conspiracy

    15. It was a purpose of the conspiracy for the co-conspirators to enrich themselves

    through the use of Kevin J. OKeefes position at Fleet Bank by, among other things, corrupting

    the process by which Fleet Bank sold distressed loan assets, including using the confidential

    information of Fleet Bank to submit winning bids, and to conceal the conspiracy from Fleet Bank

    and others.

    Manner And Means Of The Conspiracy

    The manner and means by which defendants RICHARD R. GIROUARD, PAUL A.

    MAYOTTE, GIROUARD ASSOCIATES and RGA, and others known and unknown to the

    Grand Jury, sought to accomplish the objects of the conspiracy included the following:

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    16. It was part of the conspiracy that the defendants and their co-conspirators would and

    did agree that defendant GIROUARD would pay OKeefe and Aparo in exchange for OKeefes

    corrupt assistance in connection with transactions involving Fleet Bank.

    17. It was part of the conspiracy that the defendants and their co-conspirators would and

    did create, and cause to be created, companies in order to submit bids on Fleet Bank distressed

    loans and to receive proceeds from the scheme.

    18. It was part of the conspiracy that the defendants and their co-conspirators would and

    did obtain confidential information belonging to Fleet Bank and use that information to consider

    submitting bids, and to submit bids, on distressed loan assets being offered by Fleet Bank.

    19. It was part of the conspiracy that the defendants and their co-conspirators would and

    did exclude bidders who they believed would submit competitive bids for distressed loans on

    which the defendant and his co-conspirators sought to submit the winning bid.

    20. It was part of the conspiracy that the defendants and their co-conspirators would and

    did set up Lexington Associates for the purpose of receiving and distributing a portion of the

    profits from the scheme.

    21. It was part of the conspiracy that the defendants and their co-conspirators would and

    did profit financially from their corrupt and fraudulent scheme. GIROUARD and his companies,

    GIROUARD ASSOCIATES and RGA, made approximately $6 million in profits from the

    scheme. GIROUARD paid his co-conspirators, Kevin OKeefe and Paul Aparo, approximately

    $775,000 each.

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    Overt Acts

    22. In furtherance of the conspiracy, and to accomplish its purposes and objects, the

    defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES and

    RGA, together with Paul Aparo, Kevin OKeefe and others known and unknown to the Grand

    Jury, committed and caused others to commit at least one of the following overt acts, among

    others, in the District of Connecticut and elsewhere:

    The Borelli Note

    a. On or about October 29, 2001, RICHARD R. GIROUARD and Paul J. Aparo

    caused Articles of Organization to be filed with the Office of the Secretary of the State of

    Connecticut for Investment Management Associates, LLC.

    b. On or about November 27, 2001, RICHARD R. GIROUARD submitted to Fleet

    Bank an offer to purchase certain assets of Fleet Bank on behalf of Investment Management

    Associates, LLC, including an offer to purchase the Borelli Note for $35,823.

    c. On or about April 24, 2002, RICHARD R. GIROUARD executed two releases

    of mortgage as Manager of IMA for the property related to the Borelli Note in exchange for

    $250,000.

    d. On or about June 27, 2002, RICHARD R. GIROUARD and PAUL A.

    MAYOTTE caused a check to issue from RGA to Lexington Associates in the amount of

    $100,121.25, which represented half of RGAs profits on the purchase and sale of the Borelli

    Note.

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    e. On or about July 3, 2002, Paul J. Aparo caused a payment in the amount of

    $50,060.63 to be made to Kevin J. OKeefe, which represented half of the amount that RICHARD

    R. GIROUARD and PAUL A. MAYOTTE caused to be paid to Lexington Associates.

    LINC Receivables

    f. On or about September 20, 2002, defendant RICHARD R. GIROUARD and

    Paul Aparo caused the Articles of Organization for RRG Investments to be filed with the Office of

    the Secretary of the State of Connecticut.

    g. On or about October 9, 2002, RICHARD R. GIROUARD caused a letter to be

    sent from RRG Investments to Kevin OKeefe at Fleet Bank offering the sum of $8,000,000 for

    Fleet Banks interest in LINC Receivables.

    h. On or about November 13, 2002, RICHARD R. GIROUARD caused a letter to

    be sent from RRG Investments to Kevin OKeefe at Fleet Bank offering the sum of $7,766,000

    for Fleet Banks interest in LINC Receivables.

    i. On or about November 13, 2002, Kevin OKeefe wrote a Credit Policy

    Compliance memorandum seeking internal approval at Fleet Bank to sell Fleet Banks interest in

    LINC Receivables to RRG.

    j. On or about November 14, 2002, RICHARD R. GIROUARD, PAUL A.

    MAYOTTE and GIROUARD ASSOCIATES caused $776,600 to be wired from a bank account

    of GIROUARD ASSOCIATES to Fleet Bank as a down payment for the purchase of Fleet Banks

    share of LINC Receivables.

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    k. On or about November 15, 2002, RRG Investments and Fleet Bank entered into

    a Purchase and Sale Agreement for LINC Receivables. The Purchase and Sale Agreement was

    executed by defendant RICHARD R. GIROUARD on behalf of RRG Investments and by Kevin

    OKeefe on behalf of Fleet Bank.

    l. On or about November 20, 2002, RICHARD R. GIROUARD, PAUL A.

    MAYOTTE and GIROUARD ASSOCIATES caused $900,000 to be sent by wire to an account of

    Paul J. Aparos law firm in Hartford for the closing of the purchase of LINC Receivables by RRG

    Investments.

    m. On or about November 20, 2002, RICHARD R. GIROUARD, PAUL A.

    MAYOTTE and RGA caused $1,173,600 to be sent by wire from a bank account of RGA to an

    account of the law firm of Paul J. Aparo in Hartford for the closing of the purchase of LINC

    Receivables by RRG Investments.

    n. On or about November 22, 2002, RICHARD R. GIROUARD caused a letter to

    be sent to Lexington Associates and Paul Aparo stating that RRG Investments agreed to pay

    Lexington Associates 15% of the profits resulting from the purchase of LINC Receivables.

    o. On or about January 21, 2003, RICHARD R. GIROUARD caused a check in

    the amount of $50,000 to be written on an account of GIROUARD ASSOCIATES payable to the

    order of Lexington Associates, which was a payment made pursuant to the agreement to pay

    Kevin OKeefe and Paul Aparo, through Lexington Associates, 15% of the profits from RRG

    Investments purchase of LINC Receivables.

    p. On or about the following dates, in approximately the following amounts,

    RICHARD R. GIROUARD and PAUL A. MAYOTTE caused wire transfers to be made from a

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    bank account of RRG Investments to the bank account of Lexington Associates, each of which

    was a payment made pursuant to the agreement to pay Kevin OKeefe and Paul Aparo, through

    Lexington Associates, 15% of the profits from RRG Investments purchase of LINC Receivables:

    Overt Act Date Amount

    p(1) August 20, 2003 $100,176.74

    p(2) September 22, 2003 $75,779.38

    p(3) October 20, 2003 $82,498.05

    p(4) November 20, 2003 $93,967.62

    p(5) December 22, 2003 $76,191.15

    p(6) January 20, 2004 $63,831.65

    p(7) February 20, 2004 $80,892.06

    p(8) March 22, 2004 $89,683.89

    p(9) April 20, 2004 $61,720.30

    p(10) May 20, 2004 $61,987.12

    p(11) June 21, 2004 $56,626.89

    q. On or about May 28, 2004, RICHARD R. GIROUARD and PAUL A.

    MAYOTTE caused $1,600,000 to be transferred from an account of RGA at Sovereign Bank to an

    account of RRG Investments at Sovereign Bank.

    All in violation of Title 18, United States Code, Sections 371 and 2.

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    COUNT TWO Financial Institution Bribery

    18 U.S.C. 215(a)(1)(Richard R. Girouard, Paul A. Mayotte,

    Girouard Associates, Inc., Richard Girouard Associates)

    1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

    Count One of this Indictment are realleged as though fully set forth herein.

    2. From in or about October 2001, the exact being unknown to the Grand Jury, and

    continuing to on or about July 3, 2002, in the District of Connecticut and elsewhere, the

    defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES,

    INC. and RICHARD GIROUARD ASSOCIATES, LLC did knowingly and willfully corruptly

    give, offer, and promise a thing of value in excess of $1,000 to a person with intent to influence

    and reward an officer and employee of a financial institution in connection with the business and

    transactions of that financial institution, that is, defendants GIROUARD, MAYOTTE,

    GIROUARD ASSOCIATES and RGA did knowingly and willfully corruptly give, offer and

    promise money to Kevin J. OKeefe and Paul J. Aparo with the intent to influence and reward

    Kevin J. OKeefe, a Vice President of Fleet Bank, in connection with the sale of a loan known as

    the Borelli Note.

    All in violation of Title 18, United States Code, Sections 215(a)(1) and 2.

    COUNT THREE Financial Institution Bribery

    18 U.S.C. 215(a)(1)(Richard R. Girouard, Paul A. Mayotte,

    Girouard Associates, Inc., Richard Girouard Associates, LLC)

    1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

    Count One of this Indictment are realleged as though fully set forth herein.

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    2. From in or about September 2002, and continuing to at least February 2007, the exact

    dates being unknown to the Grand Jury, in the District of Connecticut and elsewhere, the

    defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES,

    INC. and RICHARD GIROUARD ASSOCIATES, LLC did knowingly and willfully corruptly

    give, offer, and promise a thing of value in excess of $1,000 to a person with intent to influence

    and reward an officer and employee of a financial institution in connection with the business and

    transactions of that financial institution, that is, defendants GIROUARD, MAYOTTE,

    GIROUARD ASSOCIATES and RGA did knowingly and willfully corruptly give, offer and

    promise to Kevin J. OKeefe and Paul J. Aparo 15% of the profits resulting from the purchase of

    Fleet Banks portion of an entity known as LINC Receivables with the intent to influence and

    reward Kevin J. OKeefe, a Vice President of Fleet Bank, in connection with the sale and

    purchase of Fleet Banks portion of LINC Receivables.

    All in violation of Title 18, United States Code, Sections 215(a)(1) and 2.

    COUNT FOUR Bank Fraud

    18 U.S.C. 1344(1)(Richard R. Girouard, Paul A. Mayotte,

    Girouard Associates, Inc., Richard Girouard Associates)

    1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

    Count One of this Information are realleged as though fully set forth herein.

    2. From in or about October 2001, and continuing to at least February 2007, the exact

    dates being unknown to the Grand Jury, the defendants, RICHARD R. GIROUARD, PAUL A.

    MAYOTTE, GIROUARD ASSOCIATES, INC. and RICHARD GIROUARD ASSOCIATES,

    LLC, did knowingly and intentionally execute and attempt to execute a scheme to defraud Fleet

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    Bank in that defendants GIROUARD, MAYOTTE, GIROUARD ASSOCIATES and RGA did

    secretly offer and agree to make, and did in fact make, corrupt payments to Kevin J. OKeefe and

    Paul J. Aparo with the intent to influence and reward OKeefe as a Vice President of Fleet Bank

    in connection with transactions involving Fleet Bank, including obtaining confidential

    information and other services.

    All in violation of Title 18, United States Code, Sections 1344(1) and 2.

    COUNTS FIVE through NINE Money Laundering

    18 U.S.C. 1957

    (Richard R. Girouard, Paul A. Mayotte)

    1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

    Count One of this Information are realleged as though fully set forth herein.

    2. On or about the dates set forth below, in the District of Connecticut and

    elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE did knowingly

    engage and attempt to engage in monetary transactions in criminally derived property of a value

    greater than $10,000, all involving financial institutions which were engaged in, and the activities

    of which affected, interstate commerce, such property having been derived from specified

    unlawful activity, that is financial institution bribery (18 U.S.C. 215) and bank fraud (18 U.S.C.

    1344), as follows:

    Count Date Monetary Transaction

    5 5/27/04 Transfer in the amount of $1,600,000 from an account of RGA atSovereign Bank to an account of RRG Investments at Sovereign Bank

    6 5/27/04 Transfer in the amount of $320,000 from an account of RRGInvestments at Sovereign Bank to an account of GIROUARD

    ASSOCIATES at Sovereign Bank for member draw

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    Count Date Monetary Transaction

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    7 5/27/04 Transfer by check #0109 in the amount of $1,280,477.29 from anaccount of RRG Investments at Sovereign Bank to the Lafayette Life

    Insurance Company in Lafayette, Indiana for member draw

    8 11/17/04 Transfer in the amount of $1,225,000 from Lafayette Life InsuranceCompany to an account of Lexington Associates at Webster Bank

    9 11/18/04 Transfer by Webster Bank Official Check #1551712 in the amount of$1,118,762.76 to the sellers of 10 Woodland Road, Norwalk, CT

    All in violation of Title 18, United States Code, Sections 1957 and 2.

    COUNT TEN Conspiracy18 U.S.C. 371

    (Richard R. Girouard, Paul A. Mayotte)

    1. The allegations contained in Paragraphs 1 through 13 of Count One of this Information

    are realleged as though fully set forth herein.

    2. Defendant RICHARD R. GIROUARD needed to raise capital in order for his company,

    RRG Investments, LLC, to be able to purchase Fleet Banks portion of LINC Receivables.

    GIROUARD and defendant PAUL A. MAYOTTE sought and used the assistance of others,

    including GIROUARDs long-time banker, to identify and approach individuals, banks, and

    private investment firms willing to invest or loan money in connection with the purchase of LINC

    Receivables.

    3. In or about October 2002, GIROUARD and defendant PAUL A. MAYOTTE entered

    into discussions with a private investment firm, referred to herein as Company A, and Company

    As sole owner, referred to herein as Individual A, about the ability and desire of Individual A

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    and his company to provide financing for the purchase of Fleet Banks portion of LINC

    Receivables.

    4. On or about November 18, 2002, GIROUARD and MAYOTTE came to an agreement

    on terms with Individual A. Under a subsequent written agreement between RRG Investments

    and Company A, dated November 22, 2002, RRG Investments and Company A agreed to loan

    RRG Investments $2,500,000 in return for a 32% share of the net cash flows received pursuant to

    the purchase of LINC Receivables after RRG Investments and Company A had recouped their

    initial investment of $4,150,000 and $2,500,000, respectively.

    5. On or about November 20 and 22, 2002, Company A wired a total of approximately

    $2,500,000 to the law firm of Paul Aparo, who was acting as counsel for RRG Investments, for

    RRG Investments purchase of Fleet Banks share of LINC Receivables.

    6. Between November 2002 and September 2005, RRG Investments paid Company A its

    original investment of approximately $2,500,000 back plus 32% of the profits up to September

    2005.

    7. On or about October 24, 2005, MAYOTTE informed Individual A that RRG

    Investments would be holding any further distributions due to legal and tax issues that had arisen

    concerning LINC Receivables. MAYOTTE told Individual A that he would keep him advised

    and let him know as soon as the issues were resolved.

    The Conspiracy

    8. Beginning in or about October 2005, and continuing to at least in or about September

    2008, the exact dates being unknown to the Grand Jury, in the District of Connecticut and

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    elsewhere, the defendants, RICHARD R. GIROUARD and PAUL A. MAYOTTE, did

    unlawfully, willfully and knowingly conspire, combine, confederate and agree with each other

    and with persons known and unknown to the Grand Jury to execute and attempt to execute a

    scheme and artifice to defraud Individual A and Company A out of money and property in that

    GIROUARD and MAYOTTE caused RRG Investments to make no payments to Company A after

    September 2005, notwithstanding the fact that Company A was due and owed 32% of the

    approximately $1,334,846.98 that RRG Investments received from LINC Receivables between

    October 2005 and September 2008, all in violation of Title 18, United States Code, Section 1343.

    Object of the Conspiracy

    9. It was an object of the conspiracy for GIROUARD and MAYOTTE to enrich

    themselves by deceiving Individual A into believing that his company, Company A, was not

    entitled to any further payments pursuant to the purchase of LINC Receivables and instead

    keeping for themselves the payments to which Company A was legally entitled.

    Manner and Means of the Conspiracy

    The manner and means by which defendants RICHARD R. GIROUARD and PAUL A.

    MAYOTTE, and others known and unknown to the Grand Jury, sought to accomplish the object

    of the conspiracy included the following:

    10. It was part of the conspiracy that GIROUARD and MAYOTTE would and did inform

    Individual A that due to legal and tax issues, they would be temporarily holding distributions to

    Company A from the purchase of LINC Receivables.

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    11. It was part of the conspiracy that GIROUARD and MAYOTTE would and did

    conceal from Individual A and Company A the fact that the legal and tax issues cited as cause for

    temporarily holding distributions did not result in the need to withhold distributions to Company

    A indefinitely.

    12. It was part of the conspiracy that GIROUARD and MAYOTTE would not and did not

    resume making payments to Individual A and Company A, as they were knew they were required

    to do under the the written agreement between RRG Investments and Company A.

    13. It was part of the conspiracy that GIROUARD and MAYOTTE would and did divide

    among themselves the proceeds of their fraudulent scheme.

    Overt Acts

    In furtherance of the conspiracy, and to accomplish its purposes and objects, the

    defendants, RICHARD R. GIROUARD and PAUL A. MAYOTTE, together with others known

    and unknown to the United States Attorney, committed and caused others to commit at least one

    of the following overt acts, among others, in the District of Connecticut and elsewhere:

    14. On or about March 20, 2006, MAYOTTE sent an email to one of RRG Investments

    accountants stating that RRG Investments accounts payable to Company A for the year-end 2005

    was correct and that RRG Investments was just holding the money.

    15. On or about December 7, 2006, MAYOTTE caused approximately $103,775.59 to be

    wired from an account of RRG Investments at Sovereign Bank to an account at First National

    Bank of Jasper, Alabama, which on or about that date constituted approximately half of the

    proceeds that should have been distributed to Company A since October 2005.

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    16. On or about December 7, 2006, GIROUARD and MAYOTTE caused approximately

    $103,775.60 to be wired from an account of RRG Investments at Sovereign Bank to an account

    controlled by GIROUARD at Bank of America in Florida, which on or about that date constituted

    approximately half of the proceeds that should have been distributed to Company A since October

    2005.

    17. In or about March 2007, the exact date being unknown to the Grand Jury, MAYOTTE

    told one of RRG Investments accountants that there was a new investor who had been paid half

    of the money that had been listed as an account payable to Company A.

    18. On or about January 22, 2008, MAYOTTE caused approximately $36,700.81 to be

    wired from an account of RRG Investments at Sovereign Bank to an account at First National

    Bank of Jasper, Alabama.

    All in violation of Title 18, United States Code, Sections 371 and 2.

    COUNTS ELEVEN and TWELVE Wire Fraud

    18 U.S.C. 1343(Richard R. Girouard, Paul A. Mayotte)

    1. The allegations contained in Paragraphs 1 through 13 of Count One of this Indictment,

    and the allegations contained Paragraphs 1 through 7 and Paragraphs 10 - 18 of Count Ten of this

    Indictment, are realleged as though fully set forth herein.

    2. Beginning in approximately October 2005, the precise date being unknown to the

    Grand Jury, and continuing to at least September 2008, in the District of Connecticut and

    elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE knowingly and

    intentionally devised and intended to devise, and participated in, a scheme and artifice to defraud

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    individuals out of money and property, and to obtain money and property by means of materially

    false and fraudulent pretenses, representations, promises and omissions, in that defendants

    GIROUARD and MAYOTTE caused RRG Investments to make no payments to Company A after

    September 2005, notwithstanding the fact that Company A was due and owed 32% of the

    approximately $1,334,846.98 that RRG Investments received from LINC Receivables between

    October 2005 and September 2008.

    3. For the purpose of executing and attempting to execute the aforesaid scheme and

    artifice to defraud, on or about the dates listed below, in the District of Connecticut and

    elsewhere, defendants GIROUARD and MAYOTTE did knowingly cause to be transmitted in

    interstate commerce by means of wire communication certain signs, signals and sounds the

    following:

    Count Date Use of Interstate Wires

    11 12/7/06 Wire transfer in the amount of $103,775.59 from an account of RRGInvestments at Sovereign Bank in Connecticut to an account at First

    National Bank of Jasper, Alabama

    12 12/7/06 Wire transfer in the amount of $103,775.60 from an account of RRGInvestments at Sovereign Bank in Connecticut to an account at Bank of

    America in Stuart, Florida

    All in violation of Title 18, United States Code, Sections 1343 and 2.

    COUNTS THIRTEEN through FIFTEEN Money Laundering

    18 U.S.C. 1957

    (Richard R. Girouard, Paul A. Mayotte)

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    1. The allegations contained in Paragraphs 1 through 13 of Count One of this Indictment,

    and the allegations contained in Paragraphs 1 through 7 and Paragraphs 10 - 18 of Count Ten of

    this Indictment, are realleged as though fully set forth herein.

    2. At all times relevant to this Indictment, Bank of America, Sovereign Bank, and First

    National Bank of Jasper, Alabama were financial institutions which were engaged in, and the

    activities of which affected, interstate commerce.

    3. On or about the dates set forth below, in the District of Connecticut and

    elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE did knowingly

    engage and attempt to engage in a monetary transaction in criminally derived property of a value

    greater than $10,000, all involving financial institutions which were engaged in, and the activities

    of which affected, interstate commerce, such property having been derived from specified

    unlawful activity, that is wire fraud (18 U.S.C. 1343), as follows:

    Count Date Monetary Transaction

    13 12/7/06 Transfer in the amount of $125,000.00 from an account at Bank of

    America in Stuart, Florida to an account of an automobile dealer inNew Haven, Connecticut at Sovereign Bank

    14 4/13/07 Transfer by check #115 in the amount of $34,000 from an account atthe First National Bank of Jasper, Alabama to an account at Webster

    Bank

    15 5/19/07 Transfer by check #116 in the amount of $70,000 from an account atthe First National Bank of Jasper, Alabama to Wachovia Bank

    All in violation of Title 18, United States Code, Sections 1957 and 2.

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    FORFEITURE ALLEGATION UNDER 18 U.S.C. 982(a)(2)(A)(Financial Institution Bribery)

    Upon conviction of one or more of the charges of financial institution bribery or

    conspiracy to commit financial institution bribery alleged in Counts One through Three of this

    Indictment, defendants RICHARD A. GIROUARD, PAUL A. MAYOTTE, GIROUARD

    ASSOCIATES, INC. and RICHARD GIROUARD ASSOCIATES, LLC shall forfeit to the

    United States of America pursuant to 18 U.S.C. 982(a)(2)(A), all right, title, and interest in any

    and all property, real or personal, which constitutes or is derived from proceeds traceable to

    violations of either 18 U.S.C. 215(a)(1), or conspiracy to commit violations of 18 U.S.C.

    215(a)(1), in violation of 18 U.S.C. 371, including but not limited to the following:

    Real Property:

    (a) An interest up to the amount of $1,118,762 in certain realproperty located at 10 Woodland Road, Norwalk,Connecticut.

    Money Judgment:

    (b) $10,328,606.96, which is a sum of money equal to the totalamount of any property, real or personal, which constitutesor is derived from proceeds traceable to violations of either18 U.S.C. 215(a)(1), or conspiracy to commit violations of18 U.S.C. 215(a)(1), in violation of 18 U.S.C. 371.

    If any of the above-described forfeitable property, as a result of any act or omission of the

    defendant, cannot be located upon the exercise of due diligence, has been transferred, sold to, or

    deposited with a third party, has been placed beyond the jurisdiction of the court, has been

    substantially diminished in value, or has been commingled with other property which cannot be

    divided without difficulty, it is the intent of the United States, pursuant to 21 U.S.C. 853(p), as

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    incorporated by 18 U.S.C. 982(b) and 28 U.S.C. 2461(c), to seek forfeiture of any other

    property of said defendant up to the value of the forfeitable property described above.

    All in accordance with Title 18, United States Code, Section 982(a), and Rule 32.2(a),

    Federal Rules of Criminal Procedure.

    FORFEITURE ALLEGATION UNDER 18 U.S.C. 982(a)(2)(A)(Bank Fraud)

    Upon conviction of one or more of the charges of bank fraud or conspiracy to commit

    bank fraud alleged in Counts One and Four of this Indictment, defendants RICHARD A.

    GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES, INC. and RICHARD

    GIROUARD ASSOCIATES, LLC shall forfeit to the United States of America pursuant to 18

    U.S.C. 982(a)(2)(A), all right, title, and interest in any and all property, real or personal, which

    constitutes or is derived from proceeds traceable to violations of either 18 U.S.C. 1344(1), or

    conspiracy to commit violations of 18 U.S.C. 1344(1), in violation of 18 U.S.C. 371, including

    but not limited to the following:

    Real Property:

    (a) An interest up to the amount of $1,118,762 in certain realproperty located at 10 Woodland Road, Norwalk,Connecticut.

    Money Judgment:

    (b) $10,328,606.96, which is the sum of money equal to the

    total amount of any property, real or personal, whichconstitutes or is derived from proceeds traceable toviolations of either 18 U.S.C. 1344(1), or conspiracy tocommit violations of 18 U.S.C. 1344(1), in violation of 18U.S.C. 371.

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    If any of the above-described forfeitable property, as a result of any act or omission of the

    defendant, cannot be located upon the exercise of due diligence, has been transferred, sold to, or

    deposited with a third party, has been placed beyond the jurisdiction of the court, has been

    substantially diminished in value, or has been commingled with other property which cannot be

    divided without difficulty, it is the intent of the United States, pursuant to 21 U.S.C. 853(p), as

    incorporated by 18 U.S.C. 982(b) and 28 U.S.C. 2461(c), to seek forfeiture of any other

    property of said defendant up to the value of the forfeitable property described above.

    All in accordance with Title 18, United States Code, Section 982(a), and Rule 32.2(a),

    Federal Rules of Criminal Procedure.

    FORFEITURE ALLEGATION UNDER 18 U.S.C. 982(a)(1)(Money Laundering)

    Upon conviction of one or more of the offenses alleged in Counts One and Five through

    Nine of this Indictment, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE shall

    forfeit to the United States of America pursuant to 18 U.S.C. 982(a)(1), all right, title, and

    interest in any and all money and other property involved in each offense in violation of either 18

    U.S.C. 1957, or conspiracy to commit violations of 18 U.S.C. 1957, in violation of 18 U.S.C.

    371, including but not limited to the following:

    Real Property:

    (a) An interest up to the amount of $1,118,762 in certain real

    property located at 10 Woodland Road, Norwalk,Connecticut.

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    Money Judgment:

    (b) A sum of money equal to the total amount of any property,real or personal, which constitutes or is derived fromproceeds traceable to violations of 18 U.S.C. 1957.

    If any of the above-described forfeitable property, as a result of any act or omission of the

    defendant, cannot be located upon the exercise of due diligence, has been transferred, sold to, or

    deposited with a third party, has been placed beyond the jurisdiction of the court, has been

    substantially diminished in value, or has been commingled with other property which cannot be

    divided without difficulty, it is the intent of the United States, pursuant to 21 U.S.C. 853(p), as

    incorporated by 18 U.S.C. 982(b) and 28 U.S.C. 2461(c), to seek forfeiture of any other

    property of said defendant up to the value of the forfeitable property described above.

    All in accordance with Title 18, United States Code, Section 982(a)(1), and Rule 32.2(a),

    Federal Rules of Criminal Procedure.

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    A TRUE BILL

    FOREPERSON

    ______________________________________NORA R. DANNEHYACTING UNITED STATES ATTORNEY

    ______________________________________ERIC J. GLOVER

    ASSISTANT UNITED STATES ATTORNEY