United States Attorney's Office District of Connecticut
Press Release

FORMER AVON RESIDENT SENTENCED TO 33 MONTHS FOR BANK FRAUD, MONEY LAUNDERING

Kevin J. O'Connor, United States Attorney for the District of Connecticut, today announced that JOHN F. GUILLORY, age 39, of Orlando, Florida, and formerly of Avon, Connecticut, has been sentenced on his conviction for bank fraud, wire fraud, money laundering and making false statements on a bank loan application. During sentencing proceedings yesterday, September 2, in Bridgeport federal court, Senior United States District Judge Alan H. Nevas sentenced GUILLORY to 33 months of imprisonment, followed by three years of supervised release. In addition, Judge Nevas ordered GUILLORY to pay restitution in the amount of $295,450.

In February 2004, GUILLORY pleaded guilty to eight counts of a 24-count Indictment that charged him with a variety of financial crimes related to his home improvement contracting business. In pleading guilty, GUILLORY admitted that he defrauded banks by depositing worthless checks into his own checking account and then withdrawing funds in the form of cashier's checks before the banks discovered that the checks he had deposited were worthless. GUILLORY used this method in August and September 2000 to defraud Peoples Bank and Fleet Bank out of a total of $224,000. In addition, GUILLORY pleaded guilty to three counts of laundering the money he obtained from his bank frauds, and admitted in documents filed with the Court to 14 other instances of laundering the fraudulently obtained funds.

GUILLORY also admitted that he had defrauded Household Retail Services, a home improvement lending company located in Illinois. He used his position as a dealer for Household Retail Services to obtain fraudulent loans in the names of certain homeowners who were customers of his home improvement contracting business. GUILLORY admitted that on three separate occasions in April and May 2000, he obtained $15,000 loans in the names of Connecticut homeowners for whom he had performed contracting services. The homeowners were unaware that GUILLORY had borrowed money in their names and they did not receive any of the loan proceeds. The scheme came to light when Household Retail Services began dunning the homeowners for monthly loan payments for the bogus loans. GUILLORY further admitted that he pocketed $45,000 by setting up the fraudulent loans and arranging to have the loan proceeds wire-transferred to his bank account, all without the knowledge or consent of the homeowners. Two of GUILLORY's victims in the bogus loan scheme addressed the court at sentencing, describing the personal and financial damage they suffered as a result of GUILLORY's fraud.

GUILLORY also pleaded guilty to one count of making false statements on the mortgage application for the purchase of his home in Florida. GUILLORY admitted that in August 2000, he overstated his assets to make it appear that he was a better credit risk.

According to the prosecutor, GUILLORY's fraudulent conduct extended beyond the federal offenses charged in the Indictment. The Connecticut Department of Consumer Protection has received dozens of complaints against GUILLORY from homeowners who paid him for residential renovations, which he never performed or began and did not complete. There are presently court judgments against GUILLORY in the total amount of $700,000. The prosecutor noted that GUILLORY had also defrauded homeowners in Massachusetts.

In imposing sentence, Judge Nevas told GUILLORY: "You are a consummate con-artist and have left in your wake numerous people from whom you have taken . . . large amounts of money. Honest, hard-working people. Not only money, but [you caused] heartache and sleepless nights, wondering how they would repair their homes and restore their credit. You need severe punishment."

In sentencing GUILLORY to 33 months in prison, which was the upper end of the range permitted by the federal sentencing guidelines, Judge Nevas stated that he thought that an appropriate sentence would be twice as much. The federal sentencing guidelines limit the discretion of judges to impose more severe sentences.

As part of the plea agreement, GUILLORY agreed to forfeit one of the assets he purchased with his ill-gotten gains, a residence that he had purchased in Orlando, Florida.

"The conduct in this case was particularly egregious," U.S. Attorney O'Connor stated. "This conviction underscores the federal government's strong commitment to the aggressive investigation and prosecution of fraud in the financial setting."

This case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorneys John Marrella and Anastasia Enos.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov