Ex-West Haven City Hall Worker Sentenced In Fraud Scheme: Feds

WEST HAVEN, CT — Former West Haven City Hall employee John Bernardo has been sentenced to 13 months in prison for participating in a scheme to steal COVID-19 relief funds from the city, according to officials.

Bernardo, 66, was also sentenced to three years of supervised release following the prison term, U.S. Attorney for Connecticut Vanessa Roberts Avery announced Wednesday.

Bernardo was a housing specialist in the West Haven's Community Development Administration. He was listed as a principal in the Compass Investment Group, LLC, that was formed with former state Rep. Michael DiMassa in January.

DiMassa, a Democrat who represented the 116th District including parts of West Haven and New Haven, was arrested Oct. 20, 2021 on a federal complaint. He then resigned from his seat in the state House of Representatives and as Administrative Assistant to the West Haven City Council.

From July 2020 through September 2021, the City of West Haven received approximately $1.15 million in federal CARES Act funding to assist with the COVID-19 pandemic response.

“DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with Bernardo, John Trasacco, and DiMassa’s now wife, Lauren DiMassa, 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. “In January 2021, DiMassa and Bernardo formed Compass Investment Group, LLC. 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.

“From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70. Bernardo received a portion of these funds. DiMassa made 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.”

Bernardo was also ordered to pay $58,927 in restitution, according to officials.

Bernardo was arrested on November 4, 2021. He pleaded guilty June 14, 2022, to one count of conspiracy to commit wire fraud.

Connecticut Attorney General William Tong announced earlier this month that he has moved to revoke or reduce Bernardo’s pension following his federal guilty plea.

Bernardo, who is released on a $250,000 bond, is required to report to prison on May 22, according to officials.

DiMassa pleaded guilty on Nov. 1, 2022 to three counts of conspiracy to commit wire fraud. He is awaiting sentencing and has agreed to pay restitution of $1,216,541, according to officials.

On December 2, 2022, a jury found Trasacco, who companies received approximately $431,982 through this scheme, guilty of one count of conspiracy to commit wire fraud and one count of wire fraud. He is awaiting sentencing.

On July 12, 2022, Lauren DiMassa, who received $147,776 through this scheme, pleaded guilty to one count of conspiracy to commit wire fraud. She is scheduled to be sentenced on Thursday, 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 here.