Monroe Business Owners Deny Fraud In Covid Relief Case

MONROE, CT — The Oxford who paid the federal government $169,563.60 after they were accused of fraudulently misspending coronavirus relief funds, said in a statement that settlement "did not admit liability or fraud of any kind."

Janine E. and Gerard Carbonaro, owners of the Monroe-based Hair Attraction Design Team, were accused by federal prosecutors of using $109,000 to pay off the mortgage of a residential property in Florida. Additionally, the government said the couple also used some of the money to purchase an additional residential investment property in Florida

The funding came from small business loans and grant/advances under the Coronavirus Aid, Relief and Economic Security Act, which was enacted to provide emergency assistance to individuals, families and businesses affected by the coronavirus pandemic.

According to the Carbonaro's attorney, Charles Tiernan, III, the couple settled the case civilly, and it is not an admission of liability.

"The Carbonaros entered into a Civil Settlement Agreement with the Government which specifically states '[t]his Settlement Agreement is neither an admission of liability by the Carbonaros nor a concession by the United States that its claims are not well founded,'" Tiernan wrote in a statement to Patch.

In the announcement of the settlement, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, said the following:

"These individuals, motivated by greed, chose to defraud programs intended to bring relief to those in need. Justice has prevailed and we will continue to pursue every opportunity to combat COVID relief fraud in the State of Connecticut."

Tiernan denied that his clients engaged in fraud. The statement did not specifically address the allegation that the couple used the money to pay for Florida properties.

"By entering into the Agreement, the Carbonaros did not admit liability or fraud of any kind," Tiernan continued. "They deny any allegation of fraud and entered into the Agreement with the Government to avoid protracted litigation."