BRISTOL — Former State Rep. Christopher Ziogas was charged along with a former state budget official with extortion and bribery for allegedly bribing state officials to stop an audit into a Bristol optometrist.
Acting United States Attorney for the District of Connecticut Marc Silverman said Friday that a New Haven grand jury returned an 18-count indictment charging Ziogas, 73, and former state deputy budget director Kosta Diamantis, 68, of Farmington, in an alleged scheme to cancel a state audit into Helen Zervas, the owner of Family Eye Care Center in Bristol.
Zervas pleaded guilty in February to healthcare fraud and conspiracy to commit extortion after she was charged with submitting Medicaid and Medicare claims “falsely representing that she had provided, or determined it was medically necessary to provide, certain treatment,” Silverman previously said.
The indictment alleges that, in 2020, Diamantis and Ziogas conspired for Diamantis to receive payments from Zervas in exchange for “official acts” concerning a Department of Social Services audit into Zervas, according to Silverman. Diamantis and Ziogas, who was serving as State Representative for the 79th District in Bristol at the time, allegedly “took steps to conceal their conduct,” Silverman said in a press release.
Diamantis and Ziogas pleaded “not guilty” to the charges before U.S. Magistrate Judge S. Dave Vatti in Bridgeport on Friday, and were released on $500,000 bonds.
The indictment alleges that Zervas knew she had fraudulently overbilled Medicaid and Medicare, and asked Ziogas, who was her fiancee, how to prevent the state audit. Ziogas sought help from Diamantis, who then allegedly took payments from Ziogas and Zervas to pressure state officials to “favorably resolve” the audit, according to the release.
The indictment alleges that Ziogas made a $20,000 “bribe payment” to Diamantis on March 4, 2020. On the same day, Zervas’ attorney emailed a DSS official with a “settlement offer” to resolve the audit, according to the release. The next day, Zervas allegedly “reimbursed” Ziogas with a $25,000 check from Family Eye Care. Ziogas allegedly made another $10,000 bribe payment to Diamantis on March 12, and was “reimbursed” by Zervas, the indictment alleges.
On May 1, 2020, a DSS official cancelled the audit and accepted Zervas’ settlement proposal, “after having been advised and pressured indirectly by Diamantis through officials at [the Office of Policy and Management] and DSS,” according to the release.
On May 12, 2020, Diamantis and Ziogas allegedly delivered a $599,810 check from Family Eye Care to DSS. On May 15, 2020, Ziogas allegedly made a “final bribe payment” of $65,000 to Diamantis, according to the release.
The indictment also alleges Diamantis and Ziogas made multiple false statements to the FBI during the investigation, and that Diamantis didn’t include the $95,000 in “corrupt payments” on his 2020 federal tax return.
Diamantis and Ziogas are charged with extortion under color of official right, which carries a maximum term of imprisonment of 20 years; bribery, which carries a maximum term of imprisonment of 10 years; conspiracy to commit extortion under color of official right, which carries a maximum term of imprisonment of 20 years; and conspiracy to commit bribery, which carries a maximum term of imprisonment of five years, according to the release.
The indictment also charges Diamantis with seven counts, and Ziogas with two counts, of making false statements, which carries maximum term of imprisonment of five years on each count; Diamantis with one count of filing a false tax return, which carries a maximum term of imprisonment of three years; Ziogas with three counts of making illegal monetary transactions, which carries a maximum term of imprisonment of 10 years on each count; and Ziogas with one count of bank fraud, which carries a maximum term of imprisonment of 30 years, according to the release.
Silverman said an indictment is “only a charge and is not evidence of guilt.”
“Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt,” Silverman said.