UNITED STATES DISTRICT COURT

DISTRICT OF CONNECTICUT

Grand Jury N-08-3

UNITED STATES OF AMERICA CRIMINAL NO. _____________

v. VIOLATIONS:
Conspiracy (18 U.S.C. § 371)
RICHARD R. GIROUARD, Financial Institution Bribery
PAUL A. MAYOTTE, (18 U.S.C. § 215(a)(1))
GIROUARD ASSOCIATES, INC., and Bank Fraud (18 U.S.C. § 1344(1))
RICHARD GIROUARD ASSOCIATES, Money Laundering (18 U.S.C. § 1957)
LLC Wire Fraud (18 U.S.C. § 1343)
Forfeiture (18 U.S.C. § 982(a)(2)(A))
Defendants. Forfeiture (18 U.S.C. § 982(a)(1))

INDICTMENT

The Grand Jury charges as follows:

COUNT ONE – Conspiracy

18 U.S.C. § 371
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates)

General Allegations

The Defendants and Their Co-Conspirators

1. At all times relevant to this Indictment, defendant RICHARD R. GIROUARD was a

real estate developer and home builder in Connecticut.

2. At all times relevant to this Indictment, defendant PAUL A. MAYOTTE was the Chief

Financial Officer of GIROUARD ASSOCIATES, INC. and a business confidant of defendant

RICHARD R. GIROUARD.

3. At all times relevant to this Indictment, defendant GIROUARD ASSOCIATES, INC.

(“GIROUARD ASSOCIATES”) was an entity organized under the laws of the State of

Connecticut. RICHARD R. GIROUARD was the president and owner of GIROUARD

ASSOCIATES, which built custom luxury homes and whose principal place of business was

located in New Canaan, Connecticut.

4. At all times relevant to this Indictment, defendant RICHARD GIROUARD

ASSOCIATES, LLC (“Richard Girouard Associates” or “RGA”) was a limited liability company

organized under the laws of the State of Connecticut. RICHARD R. GIROUARD was the sole

member of RGA. RGA received and distributed money relating to transactions referred to herein

as the “Borelli Note” and “LINC Receivables” and are discussed further below.

5. At all times relevant to this Indictment, Kevin J. O’Keefe, a co-conspirator who is not

named as a defendant herein, was a Vice President at Fleet Bank in Hartford, Connecticut, and

subsequently Bank of America in Hartford after Bank of America acquired Fleet Bank in 2004.

6. At all times relevant to this Indictment, Paul J. Aparo, a co-conspirator who is not

named as a defendant herein, was a lawyer. Aparo was a partner in a law firm in Hartford,

Connecticut. Aparo represented defendants RICHARD R. GIROUARD, GIROUARD

ASSOCIATES and other entities controlled by GIROUARD in numerous real estate and other

transactions.

Other Relevant Entities

7. Investment Management Associates, LLC (“Investment Management Associates” or

“IMA”) was a limited liability corporation organized under the laws of the State of Connecticut

on or about October 29, 2001. RICHARD R. GIROUARD was the manager of IMA. RICHARD

R. GIROUARD and Paul J. Aparo were the members of IMA. IMA was set up for the purpose of

submitting a bid on distressed loan assets owned by Fleet Bank.

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 8. RRG Investments, LLC (“RRG Investments”) was a limited liability corporation

organized under the laws of the State of Connecticut on or about September 20, 2002. RRG

Investments was set up for the purpose of submitting a bid to Fleet Bank to purchase Fleet Bank’s

share of an entity named “LINC Receivables 1999 Corporation,” which was commonly known

(and referred to herein) as “LINC Receivables.” “RRG” are the initials of defendant RICHARD

R. GIROUARD. RRG Investments was owned at various times by RICHARD R. GIROUARD

and GIROUARD ASSOCIATES.

9. Lexington Associates was the name of a shell company used by Paul J. Aparo and the

other co-conspirators in connection with the conspiracy. Aparo controlled a bank account under

the name of Lexington Associates through which RICHARD R. GIROUARD and PAUL A.

MAYOTTE caused certain proceeds of the conspiracy to be distributed.

10. AGI Associates, LLC (“AGI”) was a limited liability corporation organized under the

laws of the State of Delaware in or about July 2004. AGI was a company set up by RICHARD R.

GIROUARD and PAUL A. MAYOTTE for the purpose of purchasing an additional portion of

LINC Receivables owned by Dresdner Bank AG.

11. At all times relevant to this Indictment, Fleet Bank (including but not limited to Fleet

National Bank), Bank of America, Sovereign Bank and Webster Bank were financial institutions

whose deposits were insured by the Federal Deposit Insurance Corporation, and which were

engaged in, and the activities of which affected, interstate commerce.

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 Certain Relevant Transactions

12. In the fall of 2001, Fleet Bank wished to sell a number of distressed loan assets and

put them out for bid. These distressed loan assets were loans that Fleet Bank had made to

borrowers. Fleet Bank was legally entitled to repayment on the loans from the borrowers. The

distressed loan assets that Fleet Bank put out for bid in the fall of 2001 included a mortgage

commonly referred to as the “Borelli Note.”

13. Fleet Bank owned approximately 49.12% of an entity known as “LINC Receivables.”

LINC Receivables was the owner of certain leases and installment sales contracts which produced

a stream of revenue that was essentially divided proportionally among LINC Receivables’ three

owners: Fleet Bank (49.12%); Dresdner (25.44%); and Prudential (25.44%). Kevin J. O’Keefe

was the officer at Fleet Bank responsible for overseeing Fleet Bank’s interest in LINC

Receivables.

The Conspiracy

14. Beginning in or about October 2001, and continuing to at least in or about February

2007, the exact dates being unknown to the Grand Jury, in the District of Connecticut and

elsewhere, the defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD

ASSOCIATES, LLC, and RICHARD GIROUARD ASSOCIATES, LLC, did unlawfully,

willfully and knowingly conspire, combine, confederate and agree with each other and with

persons known and unknown to the Grand Jury to:

(a) corruptly give, offer, and promise anything of value to a person with intent to

influence and reward an officer and employee of Fleet Bank in connection with the

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 business and transactions of Fleet Bank, in violation of Title 18 United States

Code, Section 215(a)(1);

(b) execute and attempt to execute a scheme and artifice to defraud Fleet Bank, in

violation of Title 18, United States Code, Section 1344(1);

(c) execute and attempt to execute a scheme and artifice to defraud Fleet Bank of the

honest services of Kevin J. O’Keefe in violation of Title 18, United States Code,

Section 1343 and 1346; and

(d) engage and attempt to engage in monetary transactions in criminally derived

property of a value greater than $10,000 and that was derived from specified

unlawful activity, in violation of Title 18, United States Code, Section 1957(a).

Purpose of the Conspiracy

15. It was a purpose of the conspiracy for the co-conspirators to enrich themselves

through the use of Kevin J. O’Keefe’s position at Fleet Bank by, among other things, corrupting

the process by which Fleet Bank sold distressed loan assets, including using the confidential

information of Fleet Bank to submit winning bids, and to conceal the conspiracy from Fleet Bank

and others.

Manner And Means Of The Conspiracy

The manner and means by which defendants RICHARD R. GIROUARD, PAUL A.

MAYOTTE, GIROUARD ASSOCIATES and RGA, and others known and unknown to the

Grand Jury, sought to accomplish the objects of the conspiracy included the following:

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 16. It was part of the conspiracy that the defendants and their co-conspirators would and

did agree that defendant GIROUARD would pay O’Keefe and Aparo in exchange for O’Keefe’s

corrupt assistance in connection with transactions involving Fleet Bank.

17. It was part of the conspiracy that the defendants and their co-conspirators would and

did create, and cause to be created, companies in order to submit bids on Fleet Bank distressed

loans and to receive proceeds from the scheme.

18. It was part of the conspiracy that the defendants and their co-conspirators would and

did obtain confidential information belonging to Fleet Bank and use that information to consider

submitting bids, and to submit bids, on distressed loan assets being offered by Fleet Bank.

19. It was part of the conspiracy that the defendants and their co-conspirators would and

did exclude bidders who they believed would submit competitive bids for distressed loans on

which the defendant and his co-conspirators sought to submit the winning bid.

20. It was part of the conspiracy that the defendants and their co-conspirators would and

did set up Lexington Associates for the purpose of receiving and distributing a portion of the

profits from the scheme.

21. It was part of the conspiracy that the defendants and their co-conspirators would and

did profit financially from their corrupt and fraudulent scheme. GIROUARD and his companies,

GIROUARD ASSOCIATES and RGA, made approximately $6 million in profits from the

scheme. GIROUARD paid his co-conspirators, Kevin O’Keefe and Paul Aparo, approximately

$775,000 each.

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 Overt Acts

22. In furtherance of the conspiracy, and to accomplish its purposes and objects, the

defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES and

RGA, together with Paul Aparo, Kevin O’Keefe and others known and unknown to the Grand

Jury, committed and caused others to commit at least one of the following overt acts, among

others, in the District of Connecticut and elsewhere:

The “Borelli Note”

a. On or about October 29, 2001, RICHARD R. GIROUARD and Paul J. Aparo

caused Articles of Organization to be filed with the Office of the Secretary of the State of

Connecticut for Investment Management Associates, LLC.

b. On or about November 27, 2001, RICHARD R. GIROUARD submitted to Fleet

Bank an offer to purchase certain assets of Fleet Bank on behalf of Investment Management

Associates, LLC, including an offer to purchase the Borelli Note for $35,823.

c. On or about April 24, 2002, RICHARD R. GIROUARD executed two releases

of mortgage as Manager of IMA for the property related to the Borelli Note in exchange for

$250,000.

d. On or about June 27, 2002, RICHARD R. GIROUARD and PAUL A.

MAYOTTE caused a check to issue from RGA to Lexington Associates in the amount of

$100,121.25, which represented half of RGA’s profits on the purchase and sale of the Borelli

Note.

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 e. On or about July 3, 2002, Paul J. Aparo caused a payment in the amount of

$50,060.63 to be made to Kevin J. O’Keefe, which represented half of the amount that RICHARD

R. GIROUARD and PAUL A. MAYOTTE caused to be paid to Lexington Associates.

LINC Receivables

f. On or about September 20, 2002, defendant RICHARD R. GIROUARD and

Paul Aparo caused the Articles of Organization for RRG Investments to be filed with the Office of

the Secretary of the State of Connecticut.

g. On or about October 9, 2002, RICHARD R. GIROUARD caused a letter to be

sent from RRG Investments to Kevin O’Keefe at Fleet Bank offering the sum of $8,000,000 for

Fleet Bank’s interest in LINC Receivables.

h. On or about November 13, 2002, RICHARD R. GIROUARD caused a letter to

be sent from RRG Investments to Kevin O’Keefe at Fleet Bank offering the sum of $7,766,000

for Fleet Bank’s interest in LINC Receivables.

i. On or about November 13, 2002, Kevin O’Keefe wrote a Credit Policy

Compliance memorandum seeking internal approval at Fleet Bank to sell Fleet Bank’s interest in

LINC Receivables to RRG.

j. On or about November 14, 2002, RICHARD R. GIROUARD, PAUL A.

MAYOTTE and GIROUARD ASSOCIATES caused $776,600 to be wired from a bank account

of GIROUARD ASSOCIATES to Fleet Bank as a down payment for the purchase of Fleet Bank’s

share of LINC Receivables.

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 k. On or about November 15, 2002, RRG Investments and Fleet Bank entered into

a Purchase and Sale Agreement for LINC Receivables. The Purchase and Sale Agreement was

executed by defendant RICHARD R. GIROUARD on behalf of RRG Investments and by Kevin

O’Keefe on behalf of Fleet Bank.

l. On or about November 20, 2002, RICHARD R. GIROUARD, PAUL A.

MAYOTTE and GIROUARD ASSOCIATES caused $900,000 to be sent by wire to an account of

Paul J. Aparo’s law firm in Hartford for the closing of the purchase of LINC Receivables by RRG

Investments.

m. On or about November 20, 2002, RICHARD R. GIROUARD, PAUL A.

MAYOTTE and RGA caused $1,173,600 to be sent by wire from a bank account of RGA to an

account of the law firm of Paul J. Aparo in Hartford for the closing of the purchase of LINC

Receivables by RRG Investments.

n. On or about November 22, 2002, RICHARD R. GIROUARD caused a letter to

be sent to Lexington Associates and Paul Aparo stating that RRG Investments agreed to pay

Lexington Associates 15% of the profits resulting from the purchase of LINC Receivables.

o. On or about January 21, 2003, RICHARD R. GIROUARD caused a check in

the amount of $50,000 to be written on an account of GIROUARD ASSOCIATES’ payable to the

order of Lexington Associates, which was a payment made pursuant to the agreement to pay

Kevin O’Keefe and Paul Aparo, through Lexington Associates, 15% of the profits from RRG

Investment’s purchase of LINC Receivables.

p. On or about the following dates, in approximately the following amounts,

RICHARD R. GIROUARD and PAUL A. MAYOTTE caused wire transfers to be made from a

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bank account of RRG Investments to the bank account of Lexington Associates, each of which

was a payment made pursuant to the agreement to pay Kevin O’Keefe and Paul Aparo, through

Lexington Associates, 15% of the profits from RRG Investment’s purchase of LINC Receivables:

Overt Act Date Amount

p(1) August 20, 2003 $100,176.74
p(2) September 22, 2003 $75,779.38
p(3) October 20, 2003 $82,498.05
p(4) November 20, 2003 $93,967.62
p(5) December 22, 2003 $76,191.15
p(6) January 20, 2004 $63,831.65
p(7) February 20, 2004 $80,892.06
p(8) March 22, 2004 $89,683.89
p(9) April 20, 2004 $61,720.30
p(10) May 20, 2004 $61,987.12
p(11) June 21, 2004 $56,626.89

q. On or about May 28, 2004, RICHARD R. GIROUARD and PAUL A.

MAYOTTE caused $1,600,000 to be transferred from an account of RGA at Sovereign Bank to an

account of RRG Investments at Sovereign Bank.

All in violation of Title 18, United States Code, Sections 371 and 2.

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 COUNT TWO – Financial Institution Bribery
18 U.S.C. § 215(a)(1)
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates)

1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

Count One of this Indictment are realleged as though fully set forth herein.

2. From in or about October 2001, the exact being unknown to the Grand Jury, and

continuing to on or about July 3, 2002, in the District of Connecticut and elsewhere, the

defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES,

INC. and RICHARD GIROUARD ASSOCIATES, LLC did knowingly and willfully corruptly

give, offer, and promise a thing of value in excess of $1,000 to a person with intent to influence

and reward an officer and employee of a financial institution in connection with the business and

transactions of that financial institution, that is, defendants GIROUARD, MAYOTTE,

GIROUARD ASSOCIATES and RGA did knowingly and willfully corruptly give, offer and

promise money to Kevin J. O’Keefe and Paul J. Aparo with the intent to influence and reward

Kevin J. O’Keefe, a Vice President of Fleet Bank, in connection with the sale of a loan known as

the “Borelli Note.”

All in violation of Title 18, United States Code, Sections 215(a)(1) and 2.

COUNT THREE – Financial Institution Bribery

18 U.S.C. § 215(a)(1)
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates, LLC)

1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

Count One of this Indictment are realleged as though fully set forth herein.

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 2. From in or about September 2002, and continuing to at least February 2007, the exact

dates being unknown to the Grand Jury, in the District of Connecticut and elsewhere, the

defendants, RICHARD R. GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES,

INC. and RICHARD GIROUARD ASSOCIATES, LLC did knowingly and willfully corruptly

give, offer, and promise a thing of value in excess of $1,000 to a person with intent to influence

and reward an officer and employee of a financial institution in connection with the business and

transactions of that financial institution, that is, defendants GIROUARD, MAYOTTE,

GIROUARD ASSOCIATES and RGA did knowingly and willfully corruptly give, offer and

promise to Kevin J. O’Keefe and Paul J. Aparo 15% of the profits resulting from the purchase of

Fleet Bank’s portion of an entity known as “LINC Receivables” with the intent to influence and

reward Kevin J. O’Keefe, a Vice President of Fleet Bank, in connection with the sale and

purchase of Fleet Bank’s portion of “LINC Receivables.”

All in violation of Title 18, United States Code, Sections 215(a)(1) and 2.

COUNT FOUR – Bank Fraud

18 U.S.C. § 1344(1)
(Richard R. Girouard, Paul A. Mayotte,
Girouard Associates, Inc., Richard Girouard Associates)

1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

Count One of this Information are realleged as though fully set forth herein.

2. From in or about October 2001, and continuing to at least February 2007, the exact

dates being unknown to the Grand Jury, the defendants, RICHARD R. GIROUARD, PAUL A.

MAYOTTE, GIROUARD ASSOCIATES, INC. and RICHARD GIROUARD ASSOCIATES,

LLC, did knowingly and intentionally execute and attempt to execute a scheme to defraud Fleet

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Bank in that defendants GIROUARD, MAYOTTE, GIROUARD ASSOCIATES and RGA did

secretly offer and agree to make, and did in fact make, corrupt payments to Kevin J. O’Keefe and

Paul J. Aparo with the intent to influence and reward O’Keefe as a Vice President of Fleet Bank

in connection with transactions involving Fleet Bank, including obtaining confidential

information and other services.

All in violation of Title 18, United States Code, Sections 1344(1) and 2.

COUNTS FIVE through NINE – Money Laundering

18 U.S.C. § 1957
(Richard R. Girouard, Paul A. Mayotte)

1. The allegations contained in Paragraphs 1 through 13 and Paragraphs 16 through 22 of

Count One of this Information are realleged as though fully set forth herein.

2. On or about the dates set forth below, in the District of Connecticut and

elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE did knowingly

engage and attempt to engage in monetary transactions in criminally derived property of a value

greater than $10,000, all involving financial institutions which were engaged in, and the activities

of which affected, interstate commerce, such property having been derived from specified

unlawful activity, that is financial institution bribery (18 U.S.C. § 215) and bank fraud (18 U.S.C.

§ 1344), as follows:

Count Date Monetary Transaction

5 5/27/04 Transfer in the amount of $1,600,000 from an account of RGA at
Sovereign Bank to an account of RRG Investments at Sovereign Bank
6 5/27/04 Transfer in the amount of $320,000 from an account of RRG
Investments at Sovereign Bank to an account of GIROUARD
ASSOCIATES at Sovereign Bank for member draw

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 Count Date Monetary Transaction
7 5/27/04 Transfer by check #0109 in the amount of $1,280,477.29 from an
account of RRG Investments at Sovereign Bank to the Lafayette Life
Insurance Company in Lafayette, Indiana for member draw
8 11/17/04 Transfer in the amount of $1,225,000 from Lafayette Life Insurance
Company to an account of Lexington Associates at Webster Bank

9 11/18/04 Transfer by Webster Bank Official Check #1551712 in the amount of

$1,118,762.76 to the sellers of 10 Woodland Road, Norwalk, CT

All in violation of Title 18, United States Code, Sections 1957 and 2.

COUNT TEN – Conspiracy

18 U.S.C. § 371
(Richard R. Girouard, Paul A. Mayotte)

1. The allegations contained in Paragraphs 1 through 13 of Count One of this Information

are realleged as though fully set forth herein.

2. Defendant RICHARD R. GIROUARD needed to raise capital in order for his company,

RRG Investments, LLC, to be able to purchase Fleet Bank’s portion of LINC Receivables.

GIROUARD and defendant PAUL A. MAYOTTE sought and used the assistance of others,

including GIROUARD’s long-time banker, to identify and approach individuals, banks, and

private investment firms willing to invest or loan money in connection with the purchase of LINC

Receivables.

3. In or about October 2002, GIROUARD and defendant PAUL A. MAYOTTE entered

into discussions with a private investment firm, referred to herein as “Company A,” and Company

A’s sole owner, referred to herein as “Individual A,” about the ability and desire of Individual A

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and his company to provide financing for the purchase of Fleet Bank’s portion of LINC

Receivables.

4. On or about November 18, 2002, GIROUARD and MAYOTTE came to an agreement

on terms with Individual A. Under a subsequent written agreement between RRG Investments

and Company A, dated November 22, 2002, RRG Investments and Company A agreed to loan

RRG Investments $2,500,000 in return for a 32% share of the net cash flows received pursuant to

the purchase of LINC Receivables after RRG Investments and Company A had recouped their

initial investment of $4,150,000 and $2,500,000, respectively.

5. On or about November 20 and 22, 2002, Company A wired a total of approximately

$2,500,000 to the law firm of Paul Aparo, who was acting as counsel for RRG Investments, for

RRG Investments’ purchase of Fleet Bank’s share of LINC Receivables.

6. Between November 2002 and September 2005, RRG Investments paid Company A its

original investment of approximately $2,500,000 back plus 32% of the profits up to September

2005.

7. On or about October 24, 2005, MAYOTTE informed Individual A that RRG

Investments would be holding any further distributions due to legal and tax issues that had arisen

concerning LINC Receivables. MAYOTTE told Individual A that he would keep him advised

and let him know as soon as the issues were resolved.

The Conspiracy

8. Beginning in or about October 2005, and continuing to at least in or about September

2008, the exact dates being unknown to the Grand Jury, in the District of Connecticut and

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elsewhere, the defendants, RICHARD R. GIROUARD and PAUL A. MAYOTTE, did

unlawfully, willfully and knowingly conspire, combine, confederate and agree with each other

and with persons known and unknown to the Grand Jury to execute and attempt to execute a

scheme and artifice to defraud Individual A and Company A out of money and property in that

GIROUARD and MAYOTTE caused RRG Investments to make no payments to Company A after

September 2005, notwithstanding the fact that Company A was due and owed 32% of the

approximately $1,334,846.98 that RRG Investments received from LINC Receivables between

October 2005 and September 2008, all in violation of Title 18, United States Code, Section 1343.

Object of the Conspiracy

9. It was an object of the conspiracy for GIROUARD and MAYOTTE to enrich

themselves by deceiving Individual A into believing that his company, Company A, was not

entitled to any further payments pursuant to the purchase of LINC Receivables and instead

keeping for themselves the payments to which Company A was legally entitled.

Manner and Means of the Conspiracy

The manner and means by which defendants RICHARD R. GIROUARD and PAUL A.

MAYOTTE, and others known and unknown to the Grand Jury, sought to accomplish the object

of the conspiracy included the following:

10. It was part of the conspiracy that GIROUARD and MAYOTTE would and did inform

Individual A that due to legal and tax issues, they would be temporarily holding distributions to

Company A from the purchase of LINC Receivables.

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 11. It was part of the conspiracy that GIROUARD and MAYOTTE would and did

conceal from Individual A and Company A the fact that the legal and tax issues cited as cause for

temporarily holding distributions did not result in the need to withhold distributions to Company

A indefinitely.

12. It was part of the conspiracy that GIROUARD and MAYOTTE would not and did not

resume making payments to Individual A and Company A, as they were knew they were required

to do under the the written agreement between RRG Investments and Company A.

13. It was part of the conspiracy that GIROUARD and MAYOTTE would and did divide

among themselves the proceeds of their fraudulent scheme.

Overt Acts

In furtherance of the conspiracy, and to accomplish its purposes and objects, the

defendants, RICHARD R. GIROUARD and PAUL A. MAYOTTE, together with others known

and unknown to the United States Attorney, committed and caused others to commit at least one

of the following overt acts, among others, in the District of Connecticut and elsewhere:

14. On or about March 20, 2006, MAYOTTE sent an email to one of RRG Investments’

accountants stating that RRG Investments’ accounts payable to Company A for the year-end 2005

was correct and that RRG Investments was “just holding” the money.

15. On or about December 7, 2006, MAYOTTE caused approximately $103,775.59 to be

wired from an account of RRG Investments at Sovereign Bank to an account at First National

Bank of Jasper, Alabama, which on or about that date constituted approximately half of the

proceeds that should have been distributed to Company A since October 2005.

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 16. On or about December 7, 2006, GIROUARD and MAYOTTE caused approximately

$103,775.60 to be wired from an account of RRG Investments at Sovereign Bank to an account

controlled by GIROUARD at Bank of America in Florida, which on or about that date constituted

approximately half of the proceeds that should have been distributed to Company A since October

2005.

17. In or about March 2007, the exact date being unknown to the Grand Jury, MAYOTTE

told one of RRG Investments’ accountants that there was a “new investor” who had been paid half

of the money that had been listed as an account payable to Company A.

18. On or about January 22, 2008, MAYOTTE caused approximately $36,700.81 to be

wired from an account of RRG Investments at Sovereign Bank to an account at First National

Bank of Jasper, Alabama.

All in violation of Title 18, United States Code, Sections 371 and 2.

COUNTS ELEVEN and TWELVE – Wire Fraud

18 U.S.C. § 1343
(Richard R. Girouard, Paul A. Mayotte)

1. The allegations contained in Paragraphs 1 through 13 of Count One of this Indictment,

and the allegations contained Paragraphs 1 through 7 and Paragraphs 10 - 18 of Count Ten of this

Indictment, are realleged as though fully set forth herein.

2. Beginning in approximately October 2005, the precise date being unknown to the

Grand Jury, and continuing to at least September 2008, in the District of Connecticut and

elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE knowingly and

intentionally devised and intended to devise, and participated in, a scheme and artifice to defraud

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individuals out of money and property, and to obtain money and property by means of materially

false and fraudulent pretenses, representations, promises and omissions, in that defendants

GIROUARD and MAYOTTE caused RRG Investments to make no payments to Company A after

September 2005, notwithstanding the fact that Company A was due and owed 32% of the

approximately $1,334,846.98 that RRG Investments received from LINC Receivables between

October 2005 and September 2008.

3. For the purpose of executing and attempting to execute the aforesaid scheme and

artifice to defraud, on or about the dates listed below, in the District of Connecticut and

elsewhere, defendants GIROUARD and MAYOTTE did knowingly cause to be transmitted in

interstate commerce by means of wire communication certain signs, signals and sounds the

following:

Count Date Use of Interstate Wires

11 12/7/06 Wire transfer in the amount of $103,775.59 from an account of RRG
Investments at Sovereign Bank in Connecticut to an account at First
National Bank of Jasper, Alabama
12 12/7/06 Wire transfer in the amount of $103,775.60 from an account of RRG
Investments at Sovereign Bank in Connecticut to an account at Bank of
America in Stuart, Florida

All in violation of Title 18, United States Code, Sections 1343 and 2.

COUNTS THIRTEEN through FIFTEEN – Money Laundering

18 U.S.C. § 1957
(Richard R. Girouard, Paul A. Mayotte)

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 1. The allegations contained in Paragraphs 1 through 13 of Count One of this Indictment,

and the allegations contained in Paragraphs 1 through 7 and Paragraphs 10 - 18 of Count Ten of

this Indictment, are realleged as though fully set forth herein.

2. At all times relevant to this Indictment, Bank of America, Sovereign Bank, and First

National Bank of Jasper, Alabama were financial institutions which were engaged in, and the

activities of which affected, interstate commerce.

3. On or about the dates set forth below, in the District of Connecticut and

elsewhere, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE did knowingly

engage and attempt to engage in a monetary transaction in criminally derived property of a value

greater than $10,000, all involving financial institutions which were engaged in, and the activities

of which affected, interstate commerce, such property having been derived from specified

unlawful activity, that is wire fraud (18 U.S.C. § 1343), as follows:

Count Date Monetary Transaction

13 12/7/06 Transfer in the amount of $125,000.00 from an account at Bank of
America in Stuart, Florida to an account of an automobile dealer in
New Haven, Connecticut at Sovereign Bank
14 4/13/07 Transfer by check #115 in the amount of $34,000 from an account at
the First National Bank of Jasper, Alabama to an account at Webster
Bank
15 5/19/07 Transfer by check #116 in the amount of $70,000 from an account at
the First National Bank of Jasper, Alabama to Wachovia Bank

All in violation of Title 18, United States Code, Sections 1957 and 2.

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 FORFEITURE ALLEGATION UNDER 18 U.S.C. § 982(a)(2)(A)
(Financial Institution Bribery)

Upon conviction of one or more of the charges of financial institution bribery or

conspiracy to commit financial institution bribery alleged in Counts One through Three of this

Indictment, defendants RICHARD A. GIROUARD, PAUL A. MAYOTTE, GIROUARD

ASSOCIATES, INC. and RICHARD GIROUARD ASSOCIATES, LLC shall forfeit to the

United States of America pursuant to 18 U.S.C. § 982(a)(2)(A), all right, title, and interest in any

and all property, real or personal, which constitutes or is derived from proceeds traceable to

violations of either 18 U.S.C. § 215(a)(1), or conspiracy to commit violations of 18 U.S.C. §

215(a)(1), in violation of 18 U.S.C. § 371, including but not limited to the following:

Real Property:

(a) An interest up to the amount of $1,118,762 in certain real

property located at 10½ Woodland Road, Norwalk,
Connecticut.

Money Judgment:

(b) $10,328,606.96, which is a sum of money equal to the total

amount of any property, real or personal, which constitutes
or is derived from proceeds traceable to violations of either
18 U.S.C. § 215(a)(1), or conspiracy to commit violations of
18 U.S.C. § 215(a)(1), in violation of 18 U.S.C. § 371.

If any of the above-described forfeitable property, as a result of any act or omission of the

defendant, cannot be located upon the exercise of due diligence, has been transferred, sold to, or

deposited with a third party, has been placed beyond the jurisdiction of the court, has been

substantially diminished in value, or has been commingled with other property which cannot be

divided without difficulty, it is the intent of the United States, pursuant to 21 U.S.C. § 853(p), as

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incorporated by 18 U.S.C. § 982(b) and 28 U.S.C. § 2461(c), to seek forfeiture of any other

property of said defendant up to the value of the forfeitable property described above.

All in accordance with Title 18, United States Code, Section 982(a), and Rule 32.2(a),

Federal Rules of Criminal Procedure.

FORFEITURE ALLEGATION UNDER 18 U.S.C. § 982(a)(2)(A)

(Bank Fraud)

Upon conviction of one or more of the charges of bank fraud or conspiracy to commit

bank fraud alleged in Counts One and Four of this Indictment, defendants RICHARD A.

GIROUARD, PAUL A. MAYOTTE, GIROUARD ASSOCIATES, INC. and RICHARD

GIROUARD ASSOCIATES, LLC shall forfeit to the United States of America pursuant to 18

U.S.C. § 982(a)(2)(A), all right, title, and interest in any and all property, real or personal, which

constitutes or is derived from proceeds traceable to violations of either 18 U.S.C. § 1344(1), or

conspiracy to commit violations of 18 U.S.C. § 1344(1), in violation of 18 U.S.C. § 371, including

but not limited to the following:

Real Property:

(a) An interest up to the amount of $1,118,762 in certain real

property located at 10½ Woodland Road, Norwalk,
Connecticut.

Money Judgment:

(b) $10,328,606.96, which is the sum of money equal to the

total amount of any property, real or personal, which
constitutes or is derived from proceeds traceable to
violations of either 18 U.S.C. § 1344(1), or conspiracy to
commit violations of 18 U.S.C. § 1344(1), in violation of 18
U.S.C. § 371.

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 If any of the above-described forfeitable property, as a result of any act or omission of the

defendant, cannot be located upon the exercise of due diligence, has been transferred, sold to, or

deposited with a third party, has been placed beyond the jurisdiction of the court, has been

substantially diminished in value, or has been commingled with other property which cannot be

divided without difficulty, it is the intent of the United States, pursuant to 21 U.S.C. § 853(p), as

incorporated by 18 U.S.C. § 982(b) and 28 U.S.C. § 2461(c), to seek forfeiture of any other

property of said defendant up to the value of the forfeitable property described above.

All in accordance with Title 18, United States Code, Section 982(a), and Rule 32.2(a),

Federal Rules of Criminal Procedure.

FORFEITURE ALLEGATION UNDER 18 U.S.C. § 982(a)(1)

(Money Laundering)

Upon conviction of one or more of the offenses alleged in Counts One and Five through

Nine of this Indictment, defendants RICHARD R. GIROUARD and PAUL A. MAYOTTE shall

forfeit to the United States of America pursuant to 18 U.S.C. § 982(a)(1), all right, title, and

interest in any and all money and other property involved in each offense in violation of either 18

U.S.C. § 1957, or conspiracy to commit violations of 18 U.S.C. § 1957, in violation of 18 U.S.C.

§ 371, including but not limited to the following:

Real Property:

(a) An interest up to the amount of $1,118,762 in certain real

property located at 10½ Woodland Road, Norwalk,
Connecticut.

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 Money Judgment:

(b) A sum of money equal to the total amount of any property,

real or personal, which constitutes or is derived from
proceeds traceable to violations of 18 U.S.C. § 1957.

If any of the above-described forfeitable property, as a result of any act or omission of the

defendant, cannot be located upon the exercise of due diligence, has been transferred, sold to, or

deposited with a third party, has been placed beyond the jurisdiction of the court, has been

substantially diminished in value, or has been commingled with other property which cannot be

divided without difficulty, it is the intent of the United States, pursuant to 21 U.S.C. § 853(p), as

incorporated by 18 U.S.C. § 982(b) and 28 U.S.C. § 2461(c), to seek forfeiture of any other

property of said defendant up to the value of the forfeitable property described above.

All in accordance with Title 18, United States Code, Section 982(a)(1), and Rule 32.2(a),

Federal Rules of Criminal Procedure.

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 A TRUE BILL

FOREPERSON

______________________________________
NORA R. DANNEHY
ACTING UNITED STATES ATTORNEY

______________________________________
ERIC J. GLOVER
ASSISTANT UNITED STATES ATTORNEY

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