CHARLES B. SPADONI,
Lawyer Involved in Connecticut Treasurer’s Office Scandal Sentenced to
September 02, 2011
CHARLES B. SPADONI, 63, of West Chester, Pennsylvania, formerly of
Connecticut, was sentenced today by Senior United States District Judge
Ellen Bree Burns in New Haven to 24 months of imprisonment, followed by
five years of supervised release. Judge Burns also ordered SPADONI to
pay a fine in the amount of $50,000.
According to the evidence presented during a trial in this matter,
SPADONI was the general counsel of Triumph Capital Group Inc. (“Triumph
Capital”). In November 1998, shortly after former Connecticut State
Treasurer Paul J. Silvester had lost his bid for re-election, SPADONI,
Silvester and others engaged in a scheme through which two of
Silvester’s close associates received from Triumph Capital sham
“consulting contracts” worth $1 million each in return for the
investment of $200 million of state pension assets in a Triumph
Capital-related investment fund, Triumph Connecticut-II.
In 1999, federal investigators began looking into investments that
Silvester had handled at the end of his term as treasurer. After a
federal grand jury subpoena was served on a Triumph-related fund looking
for documents related to the Connecticut investment, SPADONI used a
file-erasing program called Destroy-It! and began to delete computer
files to prevent them from being obtained by subsequent grand jury
subpoenas. SPADONI continued to use Destroy-It! as Triumph Capital
employees were called before the grand jury and additional subpoenas
On July 16, 2003, a federal jury convicted SPADONI for violations of the
Racketeer Influenced and Corrupt Organizations (“RICO”) Act, RICO
conspiracy, bribery, wire fraud, and obstruction of justice. On October
25, 2006, Judge Burns sentenced SPADONI to 36 months of imprisonment,
five years of supervised release and a $50,000 fine. SPADONI appealed
his conviction and, on September 25, 2008, the U.S. Court of Appeals for
the Second Circuit upheld the conviction on the obstruction of justice
count, but ordered a new trial on the remaining counts of conviction.
The government will not retry SPADONI on the remaining counts of
SPADONI requested that he be allowed to remain released on bond while he
appeals an issue related to his conviction. Judge Burns will decide this
matter after the government submits a response to SPADONI’s motion,
which was filed today.
On September 23, 1999, Silvester pleaded guilty to one count of
violating the Racketeer Influenced and Corrupt Organization Statute and
one count of money laundering. On November 20, 2003, he was sentenced to
51 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and
the Internal Revenue Service - Criminal Investigation. This case is
being prosecuted by Assistant United States Attorneys John H. Durham and
Sandra S. Glover.