Government’s Sentencing Memorandum — United States v. Lauren Knox, No. 3:22cr33 (OAW) (Dkt. 261, D. Conn.)
Summary
Prosecutors in the District of Connecticut say Lauren Knox and Michael DiMassa conspired to defraud West Haven of $147,776 by submitting fake invoices for services the city never received. DiMassa submitted payment requests for a Youth Violence Prevention Program and for Youth Violence COVID-19 Associated Expenses, with checks made out to Knox, who cashed them and passed part of the proceeds to DiMassa. Over about ten months the city issued sixteen checks totaling $147,776.10 to Knox, who provided no services, the memorandum says. Knox pleaded guilty on July 12, 2022 to one count of conspiracy to commit wire fraud; the guidelines range is 12-18 months and a fine of $10,000 to $100,000. The government calls Knox the least culpable of the four defendants and asks for restitution of $147,776.10, jointly and severally with DiMassa.
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UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
UNITED STATES OF AMERICA : Case No. 3:22cr33 (OAW)
:
v. :
:
LAUREN KNOX : March 9, 2023
GOVERNMENT'S SENTENCING MEMORANDUM
Introduction
Lauren Knox and Michael DiMassa conspired to defraud West Haven of
$147,776 by submitting fake invoices for services never received by the
municipality. The defendant should be sentenced to a fair and just sentence in
light of her criminal conduct.
Procedural History
On July 12, 2022, the defendant pleaded guilty to one count of conspiracy to
commit wire fraud. In the plea agreement, the parties agreed that the defendant’s
base offense level under U.S.S.G. § 2B1.1 is seven and eight levels are added
because the loss exceeded $95,000 but was less than $150,000.
After subtracting two levels for acceptance of responsibility, the final offense
level is 13. With a CHC of I, the defendant is exposed to term of incarceration of
12-18 months (Zone C) and a fine of $10,000 to $100,000. The probation officer’s
application of the Sentencing Guidelines is in accord with that anticipated by the
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parties in the plea agreement.
After review of the PSR and the defendant’s sentencing memo, there do not
appear to be any disputed issues of either law or material fact in this case. Thus,
Court must determine what is a fair and just sentence under 18 U.S.C. § 3553(a).
Sentencing is scheduled for March 23, 2023 at 10 am.
Restitution
The Court should order the defendant to pay restitution to the City of West
Haven in the amount of $147,776.10, such amount to be jointly and severally liable
with Michael DiMassa.
To date, the defendant has not paid any restitution.
Offense Conduct
Michael Dimassa and the defendant carried out a scheme to defraud the City of
West Haven of money designed to be used to alleviate the economic impact of the
COVID-19 pandemic. Michael DiMassa submitted multiple fraudulent requests for
payment from the City of West Haven for services related to a Youth Violence
Prevention Program and for Youth Violence COVID-19 Associated Expenses. These
invoices listed charges for in-home counseling, cleaning supplies, special needs hourly
service, wi-fi assistance for low/moderate income families, counseling services, license
fees, a fall youth clinic, meals, support group supplies, equipment rental, and youth
clinic support group. The payment vouchers requested that checks be made out to
directly to the defendant. DiMassa retrieved the checks from West haven and
delivered them to the defendant.
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When the defendant received a payment, she cashed the check and then deposited
a portion of the proceeds into her personal bank account. She provided the
remaining proceeds to Michael Dimassa. On one occasion, the defendant deposited
the entire proceeds from a check into her personal bank account for her personal use.
During the period charged in this Indictment, the City of West Haven issued
sixteen checks totaling $147,776.10 to the defendant. During this period of time, the
defendant never provided any services to the City of West Haven.
Analysis of the § 3553(a) Factors
Section 3553(a) directs the district court to consider a number of factors in
imposing a fair and just sentence. Each criminal case is different and emphasizes
different combinations of § 3553(a) factors. In this matter, the government believes
the most important § 3553(a) factors are the (1) the specific nature and
circumstances of the offense, (2) promoting respect for the law; (3) just punishment
and (4) general deterrence. As a backdrop to the Court’s consideration of these
factors, the government believes that of the four defendants involved in this case,
this defendant is the least culpable.
The Nature and Circumstances of the Offense
The defendant’s crime constitutes a serious offense. The defendant stole
municipal money. But what makes this crime even more serious is that a portion of
the money was designed to help West Haven residents cope with a pervasive
pandemic. The theft of 147K of municipal funds is a serious crime that warrants a
serious punishment.
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The defendant argues that she should receive a reduced sentence because her
conduct was aberrational and that she has exceptional family circumstances. The
defendant concedes in her brief that her conduct was not aberrational as that term is
used in the Sentencing Guidelines to mitigate sentences, but instead was
“uncharacteristic.” See Def’s Brief at 7. But the defendant’s behavior occurred over
a period of ten months and involved sixteen checks. As part of the scheme, the
defendant went to the bank sixteen times to cash checks that she knew involved
stolen money from West Haven. Then she would give a portion of the proceeds to
DiMassa. For the latter part of the scheme, the checks involved money stolen from
West Haven’s Covid relief fund.
This was neither a single act nor short-lived scheme. The defendant engaged
in criminal activity for almost a year. As such, it can hardly be said that her criminal
conduct was “aberrant” or “uncharacteristic.” After ten months, cashing checks with
stolen money became routine for her. And she and DiMassa only stopped when they
were caught by federal authorities. As such, this a serious crime over an extended
period of time that deserves a sentence reflective of that reality.
The government agrees that the Court should consider the defendant’s
childcare responsibilities when fashioning a just sentence in this case under
§ 3553(a). Section 5H1.6, which governs departures form the Guidelines, counsels
that “family ties and responsibilities are not ordinarily relevant in determining
whether a departure may be warranted.” Further, the defendant’s claim that she
lacks a criminal history is not unusual in cases such as these. The lack of a prior
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criminal history is common among many white-collar defendants that come before
this Court. Indeed, it appears as if three of the four defendants involved in this
case have no prior criminal history. And although she is a first-time offender, her
crime was substantial. Actions have consequences.
The Sentence Must Promote Respect for the Law, Provide Just
Punishment and Offer General Deterrence
The sentence in this case must promote respect for the law. Here, the law
prohibits the theft of public funds from citizens. The punishment must be just and
reflect the fact that the defendant’s crime impacted the West Haven community.
And considering the crime involved funds were specifically earmarked to address an
ongoing historic pandemic, the Court must fashion an appropriate sentence that
recognize the seriousness of this crime while balancing the specific nature and
characteristics of this defendant.
The government agrees with the defendant’s assertion that specific
deterrence is not an important consideration under § 3553(a) in this this case. But
the Court should consider general deterrence in fashioning a fair and just sentence.
The defendant stole money for almost a year from a municipality. Many municipal
employees have access to public funds. In West Haven, there appear to have been
few checks and balances that limited DiMassa’s ability to steal money. Other
municipal employees should know that theft of public funds will result in a felony
conviction and engender significant consequences at sentencing.
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Conclusion
After considering the Sentencing Guidelines and the other sentencing factors
under 18 U.S.C. § 3553(a), the Court should impose a fair and just sentence and
order the defendant to pay of $147,776.10 in restitution.
Respectfully submitted,
VANESSA ROBERTS AVERY
UNITED STATES ATTORNEY
/s
RAY MILLER
ASSISTANT UNITED STATES ATTORNEY
FEDERAL BAR NO. CT 20451
157 CHURCH STREET, 23RD FLOOR
NEW HAVEN, CT 06510
(203) 821-3700
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CERTIFICATE OF SERVICE
This is to certify that on March 9, 2023 a copy of the foregoing Memorandum
was filed electronically. Notice of this filing will be sent by email to all parties by
operation of the Court’s electronic filing system or by mail on anyone unable to
accept electronic filing as indicated on the Notice of Electronic Filing. Parties may
access this filing through the Court=s CM/ECF System.
/s
Ray Miller
Assistant U.S. Attorney
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