WESTPORT, Conn. Westport resident Daniel Steinberg, who pleaded guilty to embezzling money from a bankrupt company, was sentenced to 30 months in a federal prison and must pay back nearly $1 million, U.S. Attorney for Connecticut David Fein announced Thursday.
In August, Steinberg, 43, pleaded guilty to one count of bankruptcy fraud . From August 2009 to August 2010, Steinberg illegally transferred $770,000 to himself from Reservoir Corporate Group LLC, a bankrupt company that owns a commercial office building in Shelton, the U.S. attorney's office said in a statement.
At the time of the fraud, Steinberg was the manager of the company. He used the money for personal expenses and expenses of other businesses he owned or controlled, according to the statement.
Steinberg concealed the fraud by falsifying the companys books and records during the bankruptcy proceedings and by providing false information to the Office of the U.S. Trustee. The fraud was discovered after a Chapter 11 bankruptcy trustee was appointed to operate the company.
Further investigation revealed that Steinberg embezzled additional funds from the company before the bankruptcy filings. In total, Steinberg embezzled $968,973, the U.S. attorneys office reported.
Steinbergs imprisonment will be followed by three years of supervised release. U.S. District Judge Janet C. Hall in Bridgeport also ordered Steinberg to pay full restitution.
Reservoir Corporate Group remains in bankruptcy and, according to Bankruptcy Court records, owes $47 million.
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