USDOJ Press Release: FORMER EMPLOYEE OF DANBURY TRASH COMPANIES SENTENCED TO 37 MONTHS IN FEDERAL PRISON

U.S. Department of Justice

United States Attorney

District of Connecticut

PRESS RELEASE

March 3, 2009



FORMER EMPLOYEE OF DANBURY TRASH COMPANIES SENTENCED TO 37 MONTHS IN FEDERAL PRISON



Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that ERIC ROMANDI, 62, of New Milford, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 37 months of imprisonment, followed by three years of supervised release. On July 29, 2008, ROMANDI pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), and one count of conspiring to defraud the Internal Revenue Service. The charges stem from a long-term investigation into the waste-hauling industry in Connecticut and eastern New York.

According to documents filed with the Court and statements made in court, ROMANDI formerly was the General Manager of companies owned and operated by James Galante, and most recently held the title of Route Supervisor at Automated Waste Disposal (AWD) and its affiliated companies based in Danbury. ROMANDI has admitted that he conspired to perpetuate a system, commonly called the “property rights system,” through which participating carters agreed not to service or compete for other carters’ customers. The property rights system, which is predicated on mail and wire fraud, and extortion, essentially destroys free enterprise, allowing the participating carters to artificially inflate their prices and leaving waste removal customers with no other options. In this scheme, which was directed at commercial and municipal customers, participating carters agreed to quote inflated prices to customers controlled by other carters.

ROMANDI was a long-time member of the enterprise operated by James Galante and a trusted associate who met regularly with the inner-circle of individuals at meetings convened in the paint shop at 307 White Street in Danbury. In the summer of 2005, the federal grand jury investigating the carting industry issued subpoenas to many AWD employees. The investigation revealed that shortly after the subpoenas were issued, ROMANDI told a witness to provide untruthful testimony to the grand jury regarding cash payments that Galante provided to Matthew “The Horse” Ianniello, who the Government has alleged was a high-ranking member of the Genovese Family of La Cosa Nostra. ROMANDI also told the witness to deny knowledge of cash that ROMANDI and another individual gave to Galante on a weekly basis, as well as fraudulent expenses claimed by Galante. This cash was a payroll kickback that was a material fact in the Government’s tax investigation.

The Government also presented to the Court information related to ROMANDI’s participation in the arson of a rival carter’s truck in May 1992. During the event, ROMANDI and another individual donned masks, brandished a firearm, removed the driver from the truck, bound him with tape, told him to warn his employer to be careful when doing business in Connecticut and New York, and then set the truck on fire.

In addition to his term of imprisonment, ROMANDI has agreed to forfeit $75,000.

Thirty-three individuals were charged as a result of the investigation. All have pleaded guilty.

On June 3, 2008, James Galante pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), one count of conspiring to defraud the Internal Revenue Service, and one count of conspiring to commit wire fraud. On September 3, 2008, Galante was sentenced to 87 months of imprisonment. In addition, Galante has forfeited his ownership interests in 25 trash hauling companies, a Southbury residence, six racing cars and a trailer used to haul the racing cars, and $448,153.10 seized from Galante’s business office and his home. Galante also was ordered to pay a fine in the amount of $100,000, and approximately $1.6 million in back taxes to the Internal Revenue Service.

On December 20, 2006, Ianniello pleaded guilty to one count of RICO conspiracy and one count of conspiring to defraud the Internal Revenue Service. On May 9, 2007, he was sentenced to 24 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation Division, the United States Department of Labor, Office of Inspector General, and the Connecticut State Police. The United States Marshals Service, the Drug Enforcement Administration’s Office of Professional Responsibility, and the Connecticut Department of Correction have provided critical assistance in the Investigation. Assistant United States Attorneys Michael J. Gustafson, Raymond F. Miller, and Henry K. Kopel are prosecuting this case.