Attorney General, OCC Seek DPUC Investigation, Suspension Of Electricity Broker For Alleged $180,000 Fraud

February 8, 2010

Attorney General Richard Blumenthal and Consumer Counsel Mary J. Healey today asked the Department of Public Utility Control (DPUC) to immediately investigate and suspend a Redding electricity broker and his company for allegedly defrauding a private schools organization of $180,000.

Blumenthal and Healey charge that Raymond Sanzone and his company Turris Associates, LLC used apparently forged documents to fraudulently more than double his commission on a contract to provide power for the Connecticut Association of Independent Schools (CAIS).

DPUC is already investigating a similar, separate allegation against Sanzone and Turris brought by Blumenthal and Healey last year.

Blumenthal and Healey asked the DPUC to investigate all electricity contracts negotiated by Sanzone; suspend Sanzone's broker license and begin proceedings to revoke it; and order all electricity suppliers to immediately withhold and escrow Sanzone's outstanding commissions.

Blumenthal said, "This shameless and shocking scam flagrantly defrauded CAIS of $180,000 that could and should have helped educate children. Schools thought they did a decent deal, only to be fraudulently charged more than twice the agreed-upon commission. A deal is a deal, but apparently not for Mr. Sanzone, whose commissions appear to mysteriously and magically inflate after signing.

"We are asking the DPUC to investigate Mr. Sanzone and Turris, and immediately suspend their licenses pending revocation. Mr. Sanzone's record raises serious concerns about his integrity and honesty, demanding that the DPUC prohibit him from making more deals. We are seeking a broad investigation not only of the CAIS contract, but all agreements negotiated by Sanzone and Turris, as well as a freeze on any commissions owed him or his company.

"We will fight vigorously and aggressively for full restitution and penalties where appropriate. We will provide criminal authorities with evidence of criminal violations if it emerges," Blumenthal said.

Healey said, "The Office of Consumer Counsel will be actively engaged with the Attorney General's Office in what we anticipate will be a rigorous DPUC investigation of this matter. There are significant consumer protection issues at stake here relating to this electricity aggregator's conduct and practices."

Sanzone is an electricity "aggregator," a middleman who arranges contracts between independent electricity providers and users.

Sanzone negotiated a contract with CAIS in June 2006 under which the power provider was to pay him a commission of 1 cent per 10 kilowatt hours sold to the organization. The cost would be passed on to CAIS.

The version of the contract, however, that Sanzone allegedly faxed the electricity supplier, Hess Corporation, said that he was to receive 2.5 cents per 10 kilowatt hours, resulting in $180,000 in fraudulent payments to him and Turris. The signature of CAIS Director Dr. Douglas J. Lyons appears different on that document compared to the original.

The DPUC is investigating a separate compliant filed by Blumenthal and Healey in November 2009 alleging that Sanzone and Turris employed a similar scam to defraud the Southington Water Department, as well as dozens of public schools, of more than $300,000.