The indictment includes a new count of mail fraud and a second count of wire fraud.
A federal grand jury has brought more charges against Earl O'Garro, the insurance agent who prosecutors say made off with more than $1 million from the state and the city of Hartford.
O'Garro's company was called Hybrid Insurance. Prosecutors charged O'Garro last year with one count of wire fraud, alleging -- among other things -- that he kept nearly $870,000 from the city of Hartford. It's money that he should have used to pay the city's insurance bill.
Prosecutors also alleged that O'Garro lied to the state to get a loan and grant. O'Garro pleaded not guilty.
Later, O'Garro rejected a plea deal that could have sent him to jail for anywhere between 33 and 51 months, according to federal sentencing guidelines. The agreement would have been subject to a judge's approval.
But this week, a grand jury returned a second indictment that includes a new count of mail fraud and a second count of wire fraud. O'Garro is scheduled to be arraigned next week, with a trial scheduled for October.
O'Garro's situation first raised concerns when officials noticed he failed to pay insurance premiums on the city's behalf.
If convicted on all three counts, O'Garro faces a maximum penalty of 60 years, although he could get far less.
Prosecutors claim that O'Garro came up with a scheme to defraud the state, various insurance companies and money lenders.
O'Garro's situation first raised concerns when officials at the city's board of education noticed that he had failed to pay insurance premiums on the city's behalf. That was just the beginning of his troubles. Eventually, O'Garro lost his insurance license, his marriage fell apart, lenders foreclosed on his home, and a Middletown restaurant he owned was shuttered.
O'Garro's troubles also intersected with Hartford Treasurer Adam Cloud, who is up for re-election this year. Cloud's office was involved in wiring O'Garro the city's money to pay its insurance premiums.
Members of his family also did business with O'Garro.
Cloud has consistently said he did nothing wrong. His attorney, John Droney, has called Cloud one of O'Garro's "victims," and he's called O'Garro himself a "sociopath."
Efforts to reach O'Garro's public defenders were unsuccessful.
A federal judge has also amended the terms of O'Garro's bond. Specifically, O'Garro was initially required to remain in Connecticut while his case was pending. According to court records, O'Garro now has a job with a market research firm based in New York. He asked the court for permission to travel to New York, Massachuessets, and Washington, D.C. for work. The court agreed.
