Feds: New Canaan Man, 30, Arrested in Connection with Fraud Scheme

Federal authorities on Monday arrested a 30-year-old New Canaan man following a 20-count indictment charging five Connecticut residents with defrauding small business loan programs.

According to an indictment returned last week, the New Canaan man and four others—from Danbury and Hartford—submitted fraudulent business loan applications here and in Washington state, the U.S. attorney for the District of Connecticut and special agent in charge of the FBI’s New Haven Division said in a joint press release. 

They “used stolen personal and business identities, or created false business identities, to apply to NDC for small business loans through the CT Boost and Flex programs,” the press release said. The agencies referred to: the National Development Council or “NDC,” now known as Grow America, a nonprofit lender that provided capital to small businesses, including through state-sponsored small business loan programs; the Connecticut Small Business Boost Fund, an economic initiative supported by the state Department of Economic and Community Development, connecting small businesses and nonprofits with support services, including access to flexible funding for capital expenditures; and the Small Business Flex Fund, an economic initiative supported by the Washington state Department of Commerce. “In connection with the loan applications, they created and submitted false business records, including fraudulent certificates of organization, false income statements, false balance sheets, and false tax returns,” the press release said. One of the other five arrested people, a 43-year-old Hartford woman, worked as a NDC contractor responsible for processing and underwriting small business loan applications. She “specifically requested to be the loan processor on certain loan applications submitted by her co-conspirators in order to further the scheme,” the press release said.

Two Charged in Richmond Hill Domestic Incident

Police arrested a New Canaan woman, 43, and Alna, Maine man, 45, following a domestic incident on Richmond Hill Road last week. At about 12:46 a.m. on May 12 (a Tuesday), officers were dispatched to a home on Richmond Hill Road on a report by the victim that an individual would not leave the house, police said. Following an investigation, authorities charged the man and woman with the misdemeanor offense, according to a police report. They both promised to appear the same day in state Superior Court. Police withheld details of the conflict, saying it’s a domestic matter. 

Under state law, people are guilty of disorderly conduct if they “with intent to cause inconvenience, annoyance or alarm, or recklessly creating a risk … [e]ngages in … threatening behavior; or … annoys or interferes with another person,” among other reasons.

Officials: Lukes Wood Road Fire Likely Caused by Faulty Electrical Device; Free Fire Safety Inspections Available

Sunday’s residential fire on Lukes Wood Road likely was caused by a faulty electrical device, officials say. Though the Mother’s Day blaze was contained to the garage, the damage to the structure and a vehicle inside “were extensive,” the New Canaan Fire Department said in a press release. With the preventable fire in mind, the New Canaan Fire Marshal’s office is urging residents who are willing to make an appointment for a complimentary fire safety assessment of their home (see contact information below). “This Community Risk Reduction Program for residences is part of the New Canaan Fire Department’s longstanding and continuous commitment to the prevention of fires,” officials said in the release. The fire safety reviews cover: escape plans; smoke and carbon monoxide detector locations; placement and use of fire extinguishers; advice on electrical outlets, cords and power strips; and information related to mechanical equipment such as heating systems and clothes dryers, among other matters.