Two Men Plead Guilty in Embezzlement Scheme at 924-Unit Connecticut Housing Cooperative

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Two men have pleaded guilty to federal charges stemming from an embezzlement conspiracy at a 924-unit residential cooperative in Connecticut, a case in which prosecutors say vendors submitted inflated or fraudulent invoices and diverted portions of the payments back to the cooperative’s general manager and another person.

The U.S. Attorney’s Office for the District of Connecticut announced Friday that Charles A. Pitcher, the former general manager of Success Village Apartments, and Carmine Gentile, part owner of a plumbing and HVAC contractor that worked at the property, each pleaded guilty this week to conspiracy to commit wire fraud.

Success Village spans 96 buildings in Bridgeport and Stratford, according to federal prosecutors. Pitcher was appointed general manager in May 2022 for an annual fee of $250,000. Gentile is a part owner of Umbrella Mechanical LLC, a New Jersey company that began providing plumbing services to the cooperative the following month, including work on piping and boilers serving residents.

Prosecutors describe inflated invoices and kickbacks

According to court documents and statements summarized by federal prosecutors, Pitcher, Gentile and others participated in a scheme between approximately June 2022 and September 2024 in which vendors submitted invoices for work that was not performed or billed SVA at artificially inflated prices.

Prosecutors said Pitcher and an individual identified as Person-1 agreed that vendors would divert roughly 10% to 30% of payments they received from Success Village in exchange for work and payments from the cooperative.

The government said the invoices included unreasonable markups, charges for goods and services that were not provided and billing amounts selected by Pitcher and Person-1. Prosecutors also said Pitcher received purported consulting fees from the cooperative despite providing no services in exchange for those payments.

Umbrella received approximately $2.63 million from Success Village, according to the Justice Department, and more than $526,000 of that amount was diverted to Pitcher and Person-1. Across Umbrella and other vendors, prosecutors said Pitcher received more than $403,150 in diverted cooperative funds associated with more than $3.66 million in payments. He also received at least $232,479.35 in fraudulent consulting fees, the government said.

Plea agreements call for millions in restitution

Gentile, 37, of Freehold, New Jersey, waived indictment and pleaded guilty Sept. 14 before U.S. District Judge Vernon D. Oliver to one count of conspiracy to commit wire fraud. The charge carries a maximum prison term of 20 years. Under his plea agreement, Gentile agreed to a forfeiture money judgment of at least $750,000 and restitution of at least $1.5 million. He remains released on a $100,000 bond pending sentencing.

Pitcher, 58, of Trumbull, pleaded guilty Sept. 15 before the same judge to the same charge. His plea agreement calls for a forfeiture money judgment of at least $635,629.35 and restitution of at least $2.5 million. He remains released on a $250,000 bond pending sentencing.

Together, the two plea agreements call for at least $4 million in restitution, although restitution and forfeiture are distinct legal remedies and the figures should not be treated as a measure of the cooperative’s total loss.

The investigation remains ongoing, according to prosecutors, and is being conducted by the FBI, IRS Criminal Investigation and the U.S. Postal Inspection Service.

Why the case matters beyond one cooperative

The case is unusually relevant to housing professionals because the alleged misconduct occurred inside the operating structure of a large residential community rather than in a conventional home-purchase or mortgage-fraud scheme. Success Village contains hundreds of households whose housing depends on the cooperative’s finances, vendors and physical systems.

The federal allegations also underscore the governance risk created when vendor selection, invoice approval and payment authority lack effective controls. Prosecutors said the invoices at issue were not the product of competitive bidding and that some included charges for services never rendered.

For cooperative boards, condominium associations and other residential communities managing substantial operating and capital budgets, the case is a reminder that procurement controls and independent review are not simply administrative safeguards. When those controls fail, the financial consequences can reach the residents whose assessments and housing costs support the property.

No sentencing dates were included in Friday’s Justice Department announcement. The government said the investigation is continuing.