2 More Charged In West Haven COVID-19 Relief Fraud: Feds

WEST HAVEN, CT — Two more people have been arrested in connection with the fraud case involving former Democratic State Rep. Michael DiMassa and the theft of more than $1.2 million in COVID-19 relief funds and other funds from West Haven, according to authorities.

DiMassa, who also worked as the Administrative Assistant to the West Haven City Council, was arrested last October on accusations that he defrauded the city out of more than $630,000 in COVID-19 relief funds. John Bernardo, who worked as a housing specialist in the West Haven's Community Development Administration, was arrested last November in connection with the case.

Lauren Knox, who is now married to DiMassa, is accused of receiving more than $147,000 for youth violence prevention programs, despite never providing any services to the city.

John Trasacco controls two businesses that received more than $430,000 for services that were never received by West Haven, according to authorities.

Knox and Trasacco were both arrested Friday.

A federal grand jury in Hartford returned a six-count indictment on Thursday that charged DiMassa, 31, Trasacco, 50, Knox, 37, Bernardo, 65, all of West Haven, with conspiracy and fraud offenses, according to a news release from the U.S. Attorney’s Office for Connecticut.

They all pleaded not guilty in federal court in New Haven on Friday and were released on bond pending trial.

West Haven received about $1.15 million in federal CARES Act funds from July 2020 through Sept. 2021 that were designated to help pay for costs incurred in the response to the COVID-19 pandemic.

“DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with Trasacco, Knox and Bernardo to steal these funds and other West Haven funds through the submission of fraudulent invoices, and subsequent payment, for COVID relief goods and services that were never provided,” officials wrote in a news release from the U.S. State's Attorney's Office. “The indictment alleges that DiMassa conspired with Trasacco through the submission of fraudulent invoices to L & H Company and JIL Sanitation Services, two entities controlled by Trasacco, for goods and services never received by West Haven, including thousands of units of Personal Protective Equipment (PPE), HVAC maintenance at multiple municipal locations, COVID supplies for the Board of Education, and cleaning services for various municipal and school buildings, including one school building that had been vacant and abandoned for several years. L & H Company and JIL Sanitation Services received approximately $431,982 through this scheme.”

The indictment also accuses DiMassa and Knox, who are now married, of submitting numerous fraudulent invoices to West Haven for services related to a Youth Violence Prevention Program and for Youth Violence COVID-19 Associated Expenses.

“These invoices listed charges for in-home counseling, cleaning supplies, special needs hourly service, wi-fi assistance for low/moderate income families, counseling services, license fees, a fall youth clinic, meals, support group supplies, equipment rental, and youth clinic support group,” the news release states. “West Haven made at least 16 payments totaling approximately $147,776.10 to Knox, who never provided any services to the City of West Haven.”

Authorities said that DiMassa and Bernardo formed Compass Investment Group, LLC in January 2021.

“Beginning in February 2021, 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. “From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70. Bernardo received at least $45,000 of these funds.”

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," the news release states.

The indictment charges DiMassa with three counts of conspiracy to commit wire fraud and three counts of wire fraud. Trasacco, Knox and Bernardo are each charged with one count of conspiracy to commit fraud and one count of wire fraud. Each charge carries a maximum term of 20 years in prison, according to officials.

Anyone with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.