$4.2 Million Gambling Addiction

Norwich accountant LaSaracina accused of bilking investors
Federal authorities arrest beleaguered Norwich accountant

F. Robert LaSaracina, the Norwich accountant already dealing with lawsuits from investors and accused of mismanaging millions in a trust fund in his care, was arrested Wednesday by federal authorities on charges he schemed to defraud investors by using their money for personal and business expenses, according to the U.S. attorney’s office.

In addition to using investment money for his own use, federal authorities say that LaSaracina used some funds from recent investors to make “lulling payments” to earlier victims of his scheme — small amounts paid to reassure victims in investment scams.

LaSaracina was charged in federal court in Hartford on one count each of mail fraud, wire fraud and money laundering. After his arrest Wednesday morning, LaSaracina appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on $500,000 bond, co-signed by family members.

Martinez ordered, as special conditions of his release, that LaSaracina not enter the grounds of any casino and that he receive a professional evaluation to determine if he has a gambling addiction.

LaSaracina’s arrest comes weeks after federal authorities raided and seized documents from his West Town Street office and a probate judge ordered LaSaracina pay $4.2 million to compensate a collection of trust funds he is accused of willfully mismanaging.

Facing lawsuits

In several lawsuits filed this year, former friends and investors claim LaSaracina used their trust in him to steal hundreds of thousands in investment money.

The arrest affidavit in the federal case was sealed to protect witnesses, a spokesman with the U.S. attorney’s office said.

Authorities said the investigation into the scheme is ongoing, and any victims or other individuals with information related to this scheme are encouraged to call the FBI at (203) 777-6311.

The mail fraud and wire fraud charges carry a maximum prison term of 20 years and the money laundering charge carries a maximum prison sentence of 10 years.

This matter is being investigated by the FBI, the criminal investigation arm of the Internal Revenue Service and the chief state’s attorney office. The case is being prosecuted by assistant U.S. attorneys Nora R. Dannehy and Michael S. McGarry.