West Haven City Hall Worker Charged In Fraud Scheme: Feds

West Haven CT

04 November, 2021

11:00 AM

Description

WEST HAVEN, CT — A West Haven City Hall employee faces federal charges in connection with defrauding the city out of COVID-19 relief funds, authorities announced. John Bernardo, 65, was arrested Thursday on a federal complaint charging him in connection with his role in the conspiracy to defraud the city out of more than $630,000 in COVID-19 relief funds. He surrendered to law enforcement on Thursday morning and was released on a $250,000 bond after appearing in federal court in New Haven. Bernardo is a housing specialist in the West Haven's Community Development Administration. He is listed as a principal in the Compass Investment Group, LLC, that was formed with former state Rep. Michael DiMassa in January. DiMassa, a Democrat who represented the 116th District including parts of West Haven and New Haven, was arrested Oct. 20 on a federal complaint. He recently resigned from his seat in the state House of Representatives and as Administrative Assistant to the West Haven City Council. Beginning in February, Compass Investment Group LLC "fraudulently billed the City of West Haven and its 'COVID-19 Grant Department' for consulting services purportedly provided to the West Haven Health Department that were not performed," officials wrote in a news release from the U.S. State's Attorney's Office. West Haven paid Compass Investment Group $636,783 from February 2021 through September 2021, officials said. Bernardo is accused of receiving at least $45,000 of those funds, according to officials. The complaint charges Bernardo with conspiracy to commit wire fraud and wire fraud. Both offenses carry a maximum term of 20 years in prison, according to officials. "As we continue forward with the investigation into this alleged horrific crime, I am happy to see that those suspected of wrongdoing and fraud are being held accountable for their actions," West Haven Mayor Nancy R. Rossi said in a statement. "I am sick to my stomach over this alleged theft, and I want all those individuals involved to be arrested and prosecuted to the full extent of the law. If found guilty, they need to go to jail. "As I stated early on when I found and reported this probable fraudulent activity, I will continue to update our residents when information becomes available and when its release will not compromise the ongoing investigation." DiMassa is also accused of making several large cash withdrawals from the Compass Investment Group LLC bank account, some of which were made "shortly before or after he was recorded as having made a large cash 'buy-in' of gaming chips at the Mohegan Sun Casino," according to officials. DiMassa has been charged with wire fraud, which carries a maximum term of 20 years in prison.