Embezzlement warrant

02/18/2011 15:37 FAX 860 258 5885 ,

OCSA P.I.O.

~

RECORD-JOURNAL

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141001/007 ~,

LJ Sa

ARREST WARRANT APPLICATION JD-CR-6<1b Rev. 1-11 e.G.s. i S4--2~ Pro B.I:- Si!e. 31"'1, 36-2.

f!JarJ.u5

STATE OF CONNECTICUT SUPERJOR COURT

36..;]

wvvwJIJd.ct.gev

01 ~ C~e nUmber

Agel\~

10-3190

nsme

Southington Police

Name (L2st, Fim, Miedle JruD5/)

Residence (TlJW1I) of accused

JONAS t Alan R.

New Britain, CT

New Britain

Gecgraphical Are= nllmber

15

Application For Arrest Warrant To: A Judge of the Superior Court

The undersigned hereby applies for a wammt for the arrest 0 , 8bovc:.n;;med accused on the basis of the facts set forth in ths: [2J Affid"vit Below.

0 Affidavit ached.

Date

Fez,.

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Afildavit The undersigned affiant, being duly

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orn aeposes and says:

1 - The Undersigned, Detective e' Egan, being duly sworn does depose and state that he is a member of the Southington Police Department and has been a sworn police officer for over 12 years prior to the date hereof and at all times mentioned herein was acting as a member of said Department and the following facts and circumstances are stated from perso[lal knowledge, and observations as well as information received from brother police officers acting in their official capacity.

2 - That on February 26, 2010 members of the governing Council of the First Baptist Church, 581 Meriden Avenue, Southington, cr came to the Southington Police Department to report the embezzlement of Church funds from the Church's endowment fund. The complaint was made by Tom Salzer (Moderator), Nancy Shaw (Treasurer), Judy Allbee, (Executive Minister of American Baptist Churches of ConnectJcut) and Michael Wu, (Financial Liaison for American BaptJst Churches of Connecticut). At the time the theft was discovered, the complainantsestimilted that approximately $285,000.00 was missing from investment funds belonging to the church, stolen over a period of at least the last five years. A report on the 2009 financial records showed the investment funds had a value of approximately $285,000.00 At the time of the complaint, the funds had fewer than one hundred dollars ($100.00) in them.

3 - That the reporting persons believed Alan Jonas, who served from 2004 until 2010 as the Church's Chairman of the Finance Committee was responsJble for the embezzlement of the money. That during this time Alan Jonas was responsible for the investment funds and maintained sole signature authority over the funds, for which routine audits were not conducted. Upon making the initial complaint, the complainants were aClvised, before the complaint could be investigated, a Forensic Audit would have to be completed. The complainants believed the missing funds came fram several accounts managed for the Church by Connecticut American Baptist Investment Fund (CABIF). It was later learned Jonas had 'set up a Fidelity Investment account in the Church1s name, making himself the sale signatory. The Complainants believed JONAS diverted the funds to this account.

(ThiS is page Dale

1 of ~1 page Affidavit.)

Jurat

Finding The foregoing Application for an arrest warrant, and affidavit(s) attached to said Application, having been submitted to and considered by the undersigned.. the undersigned finds from said affidavrt(s) that there is probable cause to believe that an offense has been committed and that the accused committed it and, therefore, that probable cause exists for the issuance of a warrant for the arrest of the above-named accused.

N~me of ~ CReferee On (Oat Dar9 a.nd SlgnaturQ

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J11 15:37 FAX 860 258 5885

ARREST WARRANT APPLICATION JD-eR-€4a Rev. 1·11 e.G.S. § S4-za Pro 8k. See. 3&-1, 36-2. 36-3

aCSA p.I.a.

4

RECORD-JOURNAL

1410021007

STATE OF CONNECTiCUT SUPERIOR COURT www.jud.et.gov

Name (Last F;r.it, Mir:telle rn/llaJ)

Rlisidenc;1lO (Town; of =sad

JONAS, Alan R.

New Britain, Ci

.own)

Geographical.

AraB number

15

Affidavit· Continued 4a • That on May 21, 2.010 Thomas Salzer provided a written statement to Detective W. Santarsiero, in which he stated; on or about February 26, 2010 he learned, through his interaction with other Church Directors, that approximately two hundred and fifty thousand dollars ($250,000.00) was missing from the Church's Fidefity account (account # X41-118761). Jonas maintained sole control of this account as the Chairman of the Finance Committee. Salzer reported Jonas had been the Chairman of the Finance Committee from approximately 2004 until February 2010.

4b. - That as Chairman, Jonas convinced the Church of its need to update the comput,er database involving finances; a database he designed, set-up and managed via his password protected access only. Further, Jonas convinced the Church to allow him to transfer funds from the Church's Fidelity account into an account he would manage through CABIF (account # CAB00015 - CAB00019). It should be noted Alan Jonas was a member of CABIF. In creating the CABIF account, Jonas made himself the sale signatory, despite requests from Nancy Shaw, Church Treasurer, that she be added as part of a dual signatory..

4c - That as a means of conducting Church operations any requests for Church funds would be made to 10nas.

Jonas would then transfer funds from the CABIF account back to the Fidelity account and then write a check made payable to the Church's general fund. Salzer stated that on occasion, Jonas would write checks from the CABIF account, making transfers greater than the amount he would deposit into the general fund. Salzer also stated on Februa'ry 28, 2008, Jonas wrote the Church a check, check number Sli4, in the amount of Two thousand five hundred dollars ($2,SOO.00) from the Wachovia Securities account (Jonas' personal bank account) in the name of Alan R. Jonas and Penny C. Jonas, account # 8887536430 (It is believed Jonas had depleted the Church's account and transferred monies from his personal account to disguise his embezzlement and cover Church expenses). Accqrding to Fidelity account information, on February 21, 2008 Jonas wrote himself. a check from the Fidelity account (check #1345) in the amount of $1,605.00, leaving the balance in the Fidelity account at $7,463.25. Again on March 4, 2008, Jonas wrote himself a check (check #1347) for the aniount of $3,133.00, leaVing the balance in the Fidelity account at $2,205.37 4d - That during his tenure as the Chairman of the Finance Committee, Jonas was responsible for creating an .

Annual financial statement, included in the Church's Annual Report. The details of this report are presented to the Church Directors and Church body, which reflect the status of accounts/assets/funds held by the Church.

According to the Annual Report, presented on February 21, 2010, covering the period of December 31, 2008 ­ December 31, 2009, J.onas indicated the Church had assets totaling Two hundred and eighty four thousand and three dollars ($284,003.00), with one hundred and eighty two thousand and twenty dollars ($182,020.00) invested In the <::ABIF accounts. The 2010 report showed an increase in assets from those reported in 2008. On March 5, 2010, the CABIF account held approximately four hundred and fourteen dollars ($414.00). The Fidelity statement, dated March 5, 2010 showed assets of apprOXimately fifty two dolfars ($52.00). Based on what was reported in the Financial Statement Clnd the assets actually in the accounts, the Church Directors concluded Jonas' falsely reported the assets and embezzled funds from the Church account, misdirecting them to his (ThiS is pags 2 of a 7 page Affiaavit.J

111 15:38 FAX 860 258 5885

ARREST WARRANT APPUCATION JD-CR-841!l f;!!lV, 1-11 C.G.S. ยง S4-2l\

Pro Bk.

S~

38-1, 56-2.

~6-3

OCSA P.I.O.

~

RECORD-JOURNAL

STATE OF CONNECTICUT SUPERIOR' COURT www.jud.ct.gOIl.

Name (last Fim, MIddle IroO.,I)

GIlQQ~pnleal

JONAS, Alan R.

At.a numb",

Affidavit - Continued

I4J 003/00i

15

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personal account (Wachovia Bank).

5 - That on July 20, 2010; Detective Santarsiero and Inspector John Bannan, of the Chief State's Attorney's Office, presented) and had signed, a Search and Seizure Warrant Application to the New Britain Superior Court.

The search authorized the search for any and all records, documents, statements, checkbooks, withdrawal and deposit slips, financial ledgers, and or programs, spreadsheets, letters, e-mails or forms pertaining to items under investigation for this violation and two other cases being investigated at the time against Jonas. On July 23, 2010) officials from the State's Attorney's Office, New Brita'in Police Department and Southington Police Department executed the, Search and Seizure Warrant at Jonas' residence, of 41 Brookside Road in the City of New Britain. During the search Investigators located handwritten notes and financial documents related to Elsie . Wray and Alan Jonas. Also located were several financial documents involVing Alan Jonas, the Baptist Church of Southington, CABI F and Fidelity. All computer related property was seized by mem bers of the New Britain Police Department and taken to New Britain Police Department. Additional items were sei~ed by State's Attorney officials and brought to their evidence facility in Rocky Hill.

6 - That on December 10, 2010, Inspector John Bannan) of the Chief State's Attorney's Office and the Undersigned, Detective Egan, presented a Search and Seizure Warrant Application to the New Britain Superior Court, which was subsequently signed. The Search and Seizure Warrant authorized the search for any and all records of Fidelity Investments and its subsidiaries for account # X41~118761J held by First Baptist Church of Southington and/or Alan R. Jonas to include, but not limited to; Account opening documents and applications; signature cards and resolutions; monthly or other periodic account statements or ledger sheets for the period beginning January 1, 2004 through April 30, 2010; deposit slips and tickets with associated deposit items; copies of all deposit items; debit or credit memoranda; legible cbpies of canceled checks, both front arJd back sides, whether paid) unpaid; a,ll records of the electronic or wire transfer of funds into or from the account, or on behalf <:>f the account holder; any items used to disburse Withdrawals .such as credit memos, bank checks, official checks, treasurer checks, teller checks, or cashier checks, ,or money orders, purchased by or at the direction of the account holders or signatories; Retained copies of all documents relating to any and all account or securities transactions. The Search Warrant was subsequently served, by Inspector Bannan, on Fidelity on December 13, 2010.

7 - That on January 18) 2011 the Undersigned received a disc containing the documents requested from the Fidelity Search Warrant from Inspector Barman. Upon delivering the disc, Inspector Bannan stated a Forensic Accountant with the Chief State's Attorney's Office would consolidate the details) specifically the checks, from the formatthey were provided on the disc, to a spread sheet. The spread sheet would then be provided to the Complainants for review, to identify which, if any) checks were written fraudulently. On January 25, 2011, I received the e-mail from Inspector Bannan,' containing the spread sheet prepared by the Chief State's Attorney's Office. The spread sheet showed each check, listed in numerical sequence including the date written, check number, who the check was written to and amount, as well as any notations made in the memo. A (This Is page 3 of a 7 page Affidevl~.)

Jurat

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OCSA P.I.O.

J11 15:38 FAX 860 258 5885

ARREST WARRANT APPLICATION

~

RECORD-JOURNAL

I4i 004/007

STATE OF CONNECTICUT SUPERIOR COURT

JD-CR-64a Rev, 1路'1 C.G.S.1I 54-;!..

pro 81<,. SeJ;. 31>-1.36-.2. 36路3

W\oIIW .JUd,cl.,gOIi

Re~ldel'l~e (Town) of ll=~e<l

""'Name (Las' Fim, Middle lru'b'al)

JONAS, Alan R.

New Britain, CT

Court to be heltl ~t if'awiiJl GCllcgraphical New Britain Ar~ nUmJ)er

15

Affidavit - Continued separate spread sheet was also included that contained checks written directly to Alan JOnas. On January 26, 2011, the Undersigned contacted Tom Salzer and adVised him the details of the State's Attorney's prepared spread sheet. I advised Salzer I would provide him a working copy on CD with instructions about how to best annotate or identify checks that were determined to be fraudulent. In addition to Salzer, other member of the Church governing body would be able to view the CD. I advised Salzer I would like to take statements from the Church's Treasurer. Salzer was adVised he would be given time to review the information and interviewsj state'ment were scheduled for February 8,2011.

8 - That o,n January 27, 2011 the Undersigned received copies of two Search Warrants completed, su.bmitted and signed by Inspector Bannan. Information from Inspector Bannan was that both Search Warrants had already been s~rvE!d. The first Search Warrant was for any account records, funds and safe deposit boxes that Alan Jonas may have had at Wdchovia Bank. This Search Warrant was served on Wachovia Bank on January 26, 2011. The second Search Warrant was for a laptop computer and three flash drives Inspector Bannan seized from Jonas when he was arrested in Puerto Rico.

9a - That on February 8, 2,011 Nancy Shaw, treasurer for the First Baptist Church, came to Southington Police Headquarters where she provided a signed sworn statement. In that statement Shaw said she currently serves as the treasurer for the First Baptist Church and has been in the position since March 2003. Shaw stated the position of treasurer is, and always has been, an unpaid and voluntary position. Shaw stated her duties include, but are not limited to; maintaining the official accounting records of the Church; serving as custodian of all operating funds of the Church; maintaining a list of all bank accounts, certificates of deposit, investment accounts and securities held in the name of the Church and preparinga monthly report comparing actual to budgeted spending for the Board of FInance. Her duties also include preparing a statement of all budgeted funds held and a current report of income and expense compared budget at regularly scheduled, special and annual meetings.

9b ~ That in approximately 2002, Shaw stated the Church's Nominating Committee nominated Alan Jonas for the position of Chairman of the Board of Trustees. In approximately 2004, the Church's Constitution was rewritten and Alan Jonas was nominated and elected to the position of Chairman of the Finance Committee, which is an unpaid, voluntary position. Shaw stated, during that time, she and other members of the Church's finance group opposed electing Jonas to the position of Chairman of the Finance Committee. She stated her opposing Jonas' appointment was the result of being aware that Jonas had previously been arrested for a theft that occurred while he YJas employed at Middlesex Hospital. Shaw stated, the Churchfs Moderator and Pastor supported Jonas, believing he was the most experienced and "would not do this again."

9c - That after being elected as the' Chairman of the Fi nance Committee, Jonas' responsibilities included handling the Church's investment portfolio. Shaw stated, after assuming the position of Cha,irman of the Finance. Committee, Jonas convinced the Church to move the funds it had in a Fidelity account to a CABIF (This Dale

Is pag8 4

of a 7 page Affid.JVit.) Signed

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J11 15:38 FAX 860 258 58&5

ARREST WARRANT APPLICATION JD-CR路S4"l Rev. 1-11 e.G.s. 搂 54-2~ PT. 8k. S= 38-1, 38.2, 3B.3

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Name (Last. First. Middle Inilial)

JONAS, Alan R.

OCSA P.I.O.

~

RECORD-JOURNAL

!4I005/007

STATE OF cONNECTICUT SUPERIOR COURT . www.jud.ct.gov Regldence (Town) of "<;I;\.I$~4

, New 8ritain, CT'

Affidavit - Continued account} which was an organization that he managed. After moving funds to CA8tF, when money was needed} Jonas would transfer funds back to the Fidelity account where a check would be written. Shaw stated she regularly confronted Jonas} questioning why they were not getting interest on their accounts. She stated Jonas explain@d; "due to the economy, dividends were not being paid.1I Shaw stated each time she questioned how the Investment accounts were being handled Jonas would argue and refuse to explain details.

9d - That at the end of February 2010 Shaw stated she called Alan Jonas' wife, Penny Jonas, to ask Alan a question. She stated Penny Jonas informed her that Alan was "sick" and that he was unable to talk to anyone.

Shaw said during this call, Penny' Jonas told her, "You know h@ took the Chorale's money,'} r@ferrlng to the . Chorale Connecticut (Chorale Connecticut was a separate theft investigated by the New Britain Police Deparrment)- Shaw stated Penny Jonas told her that Alan had informed her, "You don't need to worry about the Church's money, that it was safe." ge - That after the call with Penny Jonas, shaw stated she had a conversation with Tom Salzer, the Church's Moderator. She stated she could not recall by whom, but after this conversation a call was made to CABlf. It was discovered there was only abollt $300.00 in the Church's account. Shaw stated shortly after the information was discovered about the CABIF account} a statement from the Fidelity account was rece.ived at the Church. Shaw said when she opened and checked the statement, she discovered the balance on the account was only $52.59. Shaw stated, after confirming there were minimal funds in the CABIF account or with Fidelity, she checked several area banks} trying to confirm or locate any possible locations where Jonas may have created an account and moved the Church funds. Shaw stated no other accounts were located.

9f - That on February 4, 2011 (Shaw was uncertain of the date, it was later found to be February 3,2011) Shaw, along with Tom Salzer (ModeratorL Gloria Spain (Financial Secretary), Bill McKay (Assistant Treasurer and Church Clerk) reviewed the spreadsheet detailing all the checks drawn against the first Baptist Church's Fidelity accounts, proVided by the Undersigned. After reviewing the spreadsheet and supporting checks (front dnd back) Shaw stated she was able to determine Alan Jonas effected his embezzlement by writing a total of 111 checks of varying amounts from funds entrusted to Alan Jonas by First Baptist Church of Southington between October lS, 2004 and Octob@r of 2008. All 111 checks were made payable to himself, endorsed himself and misdirected to Alan Jonas' Wachovia account for his personal use. Shaw stated the total amount of funds she is confident were stolen by Alan Jonas was $396,228.69. That in addition to providing a statement, Shaw reviewed and signed the details of the spreadsheet detailing the checks she has identified as fraudulent lOa - That on February 8 1 ZOU Tom salzer} Moderator for the First Baptist Church, came to Southington Police . Department Headquarters where he provided a signed sworn statement. In that statement Salzer said he has served as the Moderator for approximately four years. In the position as Moderator, Salzer stated he serves as the Church's Lay-leader, with duties that include but are not limited to; presiding over all congregational meetings of the Church; serving as Chairman of the Church CounCil; facilitating communication between the (This is page 5 of ~ 7 piiJge Affidavit)

jh11 15:39 FAX 860 258 5885

ARREST WARRANT APPLICATION JD-i:R-64a Rev. 1-11 e.G.s. 搂 54-2:. pro Bk: Sec.. ~~1, 313-2, 36-3 Name (L,a$t First. MiQcile Initial)

JONAS. Alan R.

Affidavit路 Continued .

OCSA P. 1. O.

... RECORD-JOURNAL

!4J006/007

STATE OF CONNECTICUT SUPERIOR COURT WWW.jud.clgov

I ResIdence (Town) of ar;t;~eQ New Britain, GI

.

G8~!i~pnlcal

A,.,,, number

15

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Boards and Committees and attending Board or Committee meetings as deemed necess;;;ry. lOb - That according to Salzer, some time in 1999, after being recommended by the Church's Nominating Committee and approved by the Church Council, Alan Jonas was elected into the unpaid and voluntary position

of Chairman of the Church's finance board. In the capacity as Chairman of the Church's finance board, Jonas

. was responsible for overseeing the Church's Endowment funds. Jonas served in this position until February

2010. Salzer stated the decision to select Jonas for the position of Chairman of the Church's finance board was

based onhis accounting background (Jonas represented himself as a Certified Public Accountant).

10c - "rhat at the time Alan Jonas was elected, Salzer stated the Church had almost two-hundred and fifty thousand dollars ($250,000.00) invested into an endowment fund, which was reduced to tess than one thousand dollars ($1,000.00) at the time the incident was reported. Salzer stated, during his tenure, Jonas would provide the church with annual financial summaries reporting that the Church has assets of approximately three-hundred thousand dollars ($300,OOO.00). Salzer stated in early 2010 information was relayed from a Church member, beginning with Alan Jonas' wife, Penny Jonas, that Alan Jonas may have taken monies from the Church's endowments fund. Salzer stated the information was relayed through Judy Allbee (Executive Minister of the American Baptist Churches of Connecticut), that "Alan had admitted taking money from Chorale (Conne.cticut), and agreed to pay them back, but that our (the Church's) money was safe." Salzer said Penny Jonas suggested that we "check" to ensure no money was missing from the Church accounts.

10d - That on February Z6, 2010, Salzer, along with Nancy Shaw (Church Treasurer), Michael Wu (Financial Liaison for American Baptist Churches of Cbnnecticut) and Judy Allbee (Executive Minister of the American Baptist Churches of Connecticut) reported to the Southington Police that they discovered the First Baptist Church investment funds, both CABIF and Fidelity, were short two-hundred and. eighty-five thousand dollars ($285,000.00), according to the 2009 financial summary. Salzer said they immediately believed Alan Jonas was responsible for the missing funds, as he was the sale person with authority over the funds.

iDe - That on February 3, 2011 Salzer, along with Nancy Shaw (Church Treasurer), Gloria Spain (Financial Secretary), Bill McKay (Assistant Treasurer and Church Clerk) reviewed the spreadsheet provided to them by the Undersigned, detailing all the checks drawn against the First Baptist Church's Fidelity accounts. After reviewing the spreadsheet and supporting checks (front and back) Salzer stated he was ,able to determine Alan Jonas effected his embezzlement by writing a total of 111 checks of varying amounts from funds entrusted to Alan Jonas by First Baptist Church of Southington between October lS, 2004 and October of 2008. All 111 checks were made payable to himself,路 endorsed himself and misdirected to Alan Jonas' Wachovia account for his personal. use. Salzer stated the total amount of funds he is confident were stolen by Alan Jonas was $396,228.69. That in addition to providing a statement, Salzer reviewed and signed the details of the spreadsheet detailing the checks he has identified as fraUdulent.

(ihls is page 6 of a 7 page Affidavit.)

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Jurat

~11

15:39 FAX 860 258 5885

ARREST WARRANT APPLICATION JO-CR-64a. R13v. 1-11 e.G.s. ยง 54--2a Pro Bk... Sec:. 36.'. 36-2. 36-3

OCSA P.I.O.

~

RECORD-JOURNAL

141 007/007

STATE OF CONNECTICUT SUPERIOR COURT WWW'.jud.t:l.gov

Name (Last .1=I/'$t, Middle Initial)

Resldenc~ (TQwtl) or aceu~cd

Geographi~1

JONAS, Alan R.

New Britain. CT

Area numlJ",

15

Affidavit - Continued lOf - That both Shaw and Salzer maintain absolute confidence that checks written by Alan Jonas, to himself, endorsed by him and deposited into his personal account were all funds he embezzled from the endowment accounts belonging to the Church. In- addition to the aforementioned checks Salzer stated there were miscellaneous checks totaling $4,667.80 and payments in question that totaled $4,935.00 that Jonas may have also been responsible for misappropriating; however, because they could not state with absolute certainty, neither Shaw or Salzer would anest the latter were embezzled funds.

11 - That the investigation has concluded that after holding other Church posts, in 2004 Alan Jonas was elected to the position of Chairman of the Finance. Committee, which waS and continues to be an unpaid and voluntary position. That in the position of Chairman of the Finance Committee, Alan Jonas was the only person responsible for the Church's Endowment fund, which exceeded two-hundred and fifty thousand dollars ($250,OOO.00) at the time of his appointment and !=ontinued t'o grow with the addition of endowments, from parishioners. After assuming the position of Chairman of the Finance Committee Alan Jonas systematically prohibited access to Church funds by moving the funds to accounts (CABIF and Fidelity) that he maintained sole signatory rights over. Beginning on October 15, 2004 Jonas began writing checks, to, "Alan R. Jonas," endorsed, "to the account of Alan Jonas" and deposited into the Wachovia account held by Alan R Jonas. Alan Jonas continued to write a total of 111 checks, for varying amounts with various notation in-the memo lines of the checks, until October 24, 2008. ThiS investigation revealed a total of three hundred and ninety six thousand two hundred and twenty eight dollars and sixty nine cents ($396,228.69) was embezzled by Alan R. Jonas between the years of 2004 and 2008.

12 - WHEREFORE the Undersigned states that he has probable cause to believe the said Accused, Alan Jonas {4/14/47}, did commit the crime of Larceny in the First Degree, 53a-122 in violation of the Connecticut General Statues between October IS, 2004 and October 24, 2008 in the Town of Southington.

(Tnls Is page 7 of a 7 page Affidevit.)

Jurat

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