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Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Monday, March 17, 2008

Court Enters Judgment against Former Connecticut Majority Senate Leader

On March 13, 2008, the federal district court for the District of Connecticut entered a judgment imposing sanctions against William A. DiBella, the former Majority Leader of the Connecticut State Senate, and his consulting firm, North Cove Ventures, L.L.C. for their roles in aiding and abetting then Treasurer of the State of Connecticut, Paul J. Silvester in a fraudulent investment scheme. Pursuant to the scheme, Silvester had invested $75 million in state pension funds with Thayer Capital Partners, a Washington, DC-based private equity firm, and arranged for Thayer to pay DiBella a percentage of the investment, though he did not do work to justify the payment.  The court ordered DiBella to disgorge $374,500 (the amount of his ill-gotten gains from the scheme) and to pay $307,127.45 in prejudgment interest. In addition, the Court imposed a penalty of $110,000. The Court declined to enter a permanent injunction or an officer-and-director bar against DiBella.

Previously, the Commission brought and settled charges against Silvester, Thayer, Malek, and two Thayer affiliates

http://lawprofessors.typepad.com/securities/2008/03/court-enters-ju.html

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