The U.S. attorney in New Haven, Connecticut announced that a federal grand jury has returned two indictments charging five people with the theft of federal funds. One if the individuals charged is James Sullivan, who is married to California Democratic Rep. Linda Sanchez.
According to a government release, the U.S. attorney alleges that the defendants conspired to misuse an account that held funds provided by federal grants to the Connecticut Municipal Electric Energy Corporation (CMEEC), a public corporation that allows municipal electric utilities in Connecticut to provide electricity. Under the membership agreement, six municipalities provided that excess revenues, known as the “CMEEC Margin,” would be returned to the member towns to help stabilize electricity costs for citizens. Between 2010 and 2015, according to the U.S. attorney, CMEEC received over $9 million in grants from the U.S. Energy Department. Instead, the government said, the five co-conspirators spend the funds on themselves.
“Instead of protecting these funds and returning excess revenue to member towns and ratepayers, these defendants are alleged to have used the CMEEC Margin Account as a secret slush fund to pay for lavish junkets for themselves and their family and friends, as well as for other inappropriate expenses,” U.S. Attorney John Durham said in the press release.