Dec. 6 – A second criminal case involving two former utility officials appears close to resolution after a hearing Friday in Hartford federal court, 12 days before they are due to report to prison on their theft convictions in the first case .
Former Connecticut Municipal Electric Energy Cooperative CEO Drew Rankin, 63, and former CMEEC board of directors and Norwich Utilities Commission Chairman James Sullivan, 58, agreed to a proposed pretrial diversion program that would not require additional jail time or probation , but requires everyone to pay CMEEC $41,574.89 in restitution.
The agreement was presented Friday before U.S. Magistrate Judge Robert A. Richardson in Hartford federal court. Richardson recommends that the court accept the agreement, but the judge, Jeffrey A. Meyer, must give final approval.
Rankin and Sullivan were charged with theft from a program that received federal funds and conspiracy for allegedly concealing $103,832 in personal expenses that were reimbursed to Sullivan using CMEEC funds by calling them lobbying expenses. Sullivan was not a registered lobbyist for CMEEC.
The eight-page agreement, which was not immediately made public, contains terms requiring each defendant to adhere to prison and probation terms following their conviction in the first case. Although they did not plead guilty in the second case, Rankin and Sullivan agreed that U.S. attorneys likely have enough evidence to prove their case in court.
In the first criminal case, Rankin, Sullivan and former Norwich Public Utilities general manager John Bilda, 60, were each convicted of stealing from a program that received federal funds for their roles in planning and attending lavish trips to the Kentucky Derby and to The Greenbrier Golf Resort in West Virginia in 2015.
Bilda began his six-month prison sentence Wednesday at FMC Devens, a federal medical center with administrative security and minimum security prison in Middlesex, Massachusetts. Bilda was ordered to pay $187,400 in restitution to CMEEC for a portion of the travel expenses. Bilda will be placed on probation for three years after his sentence.
Sullivan was also sentenced to six months in prison, followed by three years of probation, and was ordered to pay $187,400 in restitution.
Rankin was sentenced in the first case to 12 months in prison and ordered to pay $374,400 in restitution to CMEEC, followed by three years of probation.
Rankin and Sullivan are scheduled to report to prison on Dec. 18, but the federal Bureau of Prisons has not yet notified them of their destination, Rankin's attorney, Craig A. Raabe, told Richardson on Friday.
The refund proposed in Friday's agreement would cover the amount of personal expenses reimbursed to Sullivan, minus expenses related to the Kentucky Derby and golf resort trips. These costs were already considered covered in the previous restitution order, U.S. Attorney Michael S. McGarry told Richardson as he read from the agreement.
In court on Friday, Rankin and Sullivan answered several questions from Richardson about their understanding of the agreement, but they made no substantive statements to the court.
Both declined to comment after the hearing.
Attorneys representing CMEEC were not present at the hearing, but McGarry told the judge that the co-op “strongly prefers this agreement” to a criminal trial that would cost the co-op significantly more in legal fees to pay lawyers to represent CMEEC at trial .
The agreement suspends any criminal charges in the case for 18 months, and if Rankin and Sullivan meet all the terms of the agreement, U.S. attorneys would file motions to dismiss the charges, McGarry said.
CMEEC CEO Dave Meisinger said the agency would have no comment on the proposed court agreement.
CMEEC is owned by six municipal public utilities in Connecticut: Norwich Public Utilities, Groton Utilities, Bozrah Light & Power, Jewett City Department of Public Utilities, South Norwalk Electric and Water and Norwalk Third Taxing District.
All profit revenues generated by CMEEC must be distributed among members to be used to stabilize electricity rates for customers.
