Date: Feb. 15, 2024 Contact: newsroom@ci.irs.gov Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that John Horvath of Bristol, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 34 months of imprisonment, followed by two years of supervised release, for fraud and tax offenses. According to court documents and statements made in court, Horvath was licensed by the State of Connecticut as a resident insurance producer, which authorized him to sell various forms of insurance. In that capacity, he sold annuity contracts issued by Allianz Life Insurance Company of North America (“Allianz”) to clients. Beginning no later than July 2015 and continuing until April 2021, Horvath defrauded several clients by advising them that they could achieve better rates of return through alternative investments, rather than their existing annuity contracts, and that he could broker and manage those investments for them. Victim-investors gave Horvath investment funds with the expectation he would manage the funds for them. Instead, Horvath commingled the victim-investors’ funds with his own and used the pooled money to pay personal expenses and repay earlier victim-investors. Through this scheme, Horvath defrauded at least eight victims out of a total of approximately $1,189,200. One victim, a widow who family members described as suffering from increasing memory impairment, lost nearly $900,000 through this scheme. In addition, Horvath failed to pay income taxes on his substantial income from the scheme, resulting in a loss to the government of $267,739 for the 2015 through 2020 tax years. Judge Shea ordered Horvath to pay full restitution. On July 26, 2023, Horvath pleaded guilty to one count of wire fraud and one count of tax evasion. Horvath, who is released on a $50,000 bond, is required to report to prison on April 12. This matter was investigated by the Internal Revenue Service Criminal Investigation (CI) and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Conor M. Reardon. The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311). CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
