East Haven Resident Pleads Guilty To Bank Fraud: Feds

EAST HAVEN, CT — James Farrell, 55, of East Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill to one count of bank fraud, federal authorities announced.

According to court documents and statements made in court, Farrell was the Chief Executive Officer of the New Haven County Credit Union (“NHCCU”) from approximately 1992 to June 2015.

He was then retained by NHCCU’s Board of Directors to provide assistance to the new CEO of NHCCU until March 2016. From 2010 until 2016, Farrell also provided financial and bookkeeping services to The Rib House, a restaurant located in East Haven, officials said.

The Rib House maintained a business account at NHCCU, and Farrell was primarily responsible for depositing cash sales and paying invoices for the restaurant, officials said. In pleading guilty, Farrell admitted that he defrauded NHCCU by transferring of funds from NHCCU’s general ledger account to the account held by The Rib House, officials said.

As part of the scheme, when Farrell knew that The Rib House had a financial obligation it could not meet, he transferred funds from the NHCCU general ledger account into The Rib House account, federal authorities said.

This allowed The Rib House to pay its operating costs, including paying for taxes, food, liquor and other operating expenses. Between July 2011 and March 2016, Farrell fraudulently transferred $602,908.96 from the NHCCU general ledger account primarily to The Rib House account and, to a lesser extent, for his personal benefit, officials said.

Over time, Farrell replenished $370,278.18 to the NHCCU general ledger account, leaving a shortfall of $232,630.78. Underhill scheduled sentencing for November 20 and Farrell faces a maximum term of imprisonment of 30 years. Farrell has paid full restitution to NHCCU. Farrell is released on bond pending sentencing.