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Insurance Agent Earl O'Garro Indicted, Pleads Not Guilty

Mike Priggins and Kyle Reyes
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under30ceo.com
Earl O'Garro.

Earl O'Garro, the troubled insurance agent who was the target of a federal grand jury that brought an unwelcome spotlight on Hartford City Hall last year, was charged Friday in federal courtwith one count of wire fraud. He pleaded not guilty.

O'Garro, who entered the Hartford courtroom in handcuffs and was represented by a federal public defender, pleaded not guilty to the charge. He's being prosecuted by Assistant U.S. Attorney Christopher Mattei -- the same lawyer who earlier this year helped convict former Gov. John Rowland.

In its indictment, the grand jury said that O'Garro made off with roughly $1.5 million of other people's money -- nearly $870,000 of it coming from the city of Hartford. O'Garro's role was to take the money the city gave him and use it to pay insurance premiums on its behalf, but he never did. It's a scheme he employed another time with other victims to the tune of $691,000, the indictment says.

Prosecutors also say O'Garro lied to the state when he applied for, and got, $126,000 in loan and grant funds. He told them his company, Hybrid Insurance Group, had more cash assets than it did.

O'Garro faces a maximum of 20 years in jail and a hefty fine. He was arrested Friday in Rocky Hill and is being released to the custody of his mother. Although O'Garro has been the subject of intense federal scrutiny for some time, it's unclear whether he saw the arrest coming. When asked in court whether he was familiar with the charges against him and the indictment itself, he said, he was "going through it as we speak, not in its entirety." Jury selection is scheduled for January 21. 

Credit Jeff Cohen / WNPR
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WNPR
Assistant U.S. Attorney Christopher Mattei outside Hartford's federal court building.
Credit City of Hartford
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City of Hartford
Hartford City Treasurer Adam Cloud.

One name not mentioned in open court was that of Hartford Treasurer Adam Cloud. His office was involved in transferring the city money to O'Garro, but he has steadfastly denied any wrongdoing.

This case first made news when officials at the city's board of education grew concerned about O'Garro's failure to pay the insurance premiums on its behalf.  After doing some investigating, those officials wrote in emails that they were concerned Cloud and O'Garro had an improper relationship. They noted that Cloud's family had business relations with O'Garro. The implication was that Cloud had somehow steered business to O'Garro -- again, allegations the treasurer has denied.

After O'Garro's arraignment, Cloud's attorney, John Droney, said that the "case, speculation and rumors are over for everyone except O'Garro."

Meanwhile, O'Garro's life has appeared to unravel in several other public ways -- the state revoked his insurance license, declared him in default of two substantial public loans, his marriage fell apart, his Middletown restaurant was shuttered, and lenders foreclosed on his Marlborough home.

Below is the press release from federal prosecutors:

INSURANCE AGENCY OWNER ARRESTED, CHARGED WITH DEFRAUDING MULTIPLE VICTIMS OF $1.5 MILLION

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that EARL O’GARRO, JR., 31, of Marlborough, was arrested today on an indictment alleging that he defrauded multiple victims of a total of approximately $1.5 million. Yesterday, a federal grand jury in New Haven returned the indictment, which charges O’GARRO with one count of wire fraud.

O’GARRO appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty. He was released on a $500,000 bond. According to the indictment, O’GARRO was the President, Chief Executive Officer and an owner of Hartford-based Hybrid Insurance Agency, LLC, doing business as Hybrid Insurance Group (“Hybrid”), an insurance brokerage specializing in placing wholesale and specialty line insurance products.

In January 2012, O’GARRO, on behalf of Hybrid, submitted an application to the State of Connecticut Department of Economic and Community Development (“DECD”) pursuant to the Small Business Express loan and grant program. The purpose of the application was to secure a Small Business Express loan in the amount of $100,000 and a Small Business Express grant in the amount of $26,320. It is alleged that O’GARRO provided false and misleading information concerning Hybrid’s financial condition on the application. In particular, O’GARRO falsely inflated the value of Hybrid’s cash assets in order to increase the likelihood that his application would be approved for the amount of funds he sought. Based in part on the false statements contained in O’GARRO’s application and a subsequent formal agreement, DECD approved Hybrid’s Small Business Express application and awarded Hybrid a Small Business Express loan in the amount of $100,000 and $26,320 matching grant.

The indictment further alleges that, in July 2013, O’GARRO sent a series of electronic communications to a company that administers the payment of premiums on behalf of insured entities (“Victim 1”). In the communications, O’GARRO falsely claimed that he was an officer and underwriter for an insurance company (“Insurance Company 1”) with authority to direct Victim 1 to release premium payments. Acting in his assumed capacity, O’GARRO directed Victim 1 to remit to Hybrid premium payments for policies associated with four corporate entities purportedly insured by Insurance Company 1. Three of the four companies, Blaque Rock Capital LLP d/b/a Us Restaurant, Marlbro’s Restaurant Group LLP d/b/a Us Restaurant, and Epplied Staffing Solutions LLC, were registered with the Connecticut Secretary of State and associated with O’GARRO. The fourth company, D&D Moving Company, was not registered with the Connecticut Secretary of State, but was utilized by O’GARRO as a repository for fraudulently obtained funds. In fact, Insurance Company 1 had not issued any policies for any of these entities. In response to the fraudulent communications created by O’GARRO, Victim 1 remitted approximately $691,266.75 to Hybrid, which O’GARRO then converted to his own use.

Hybrid was a wholesale broker for certain insurance policies held by the City of Hartford. The indictment further alleges that, in July 2013, O’GARRO directed the city to transfer $868,244 to Hybrid. Of that sum, $441,900 constituted a premium payment to an insurance company offering excess liability insurance policies and $228,097 constituted a premium payment to a second insurer. O’GARRO did not remit either of the premium payments, and instead converted the money to his own use. O’GARRO subsequently advised the city that the premium payments had been remitted to the insurers.

If convicted of wire fraud, O’GARRO faces a maximum term of imprisonment of 20 years. U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. U.S. Attorney Daly stated that the investigation is ongoing. This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei. The case has been assigned to U.S. District Judge Alvin W. Thompson in Hartford.

Jeff Cohen started in newspapers in 2001 and joined Connecticut Public in 2010, where he worked as a reporter and fill-in host. In 2017, he was named news director. Then, in 2022, he became a senior enterprise reporter.

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