September 21, 2006 -
Antiques Dealer Sentenced to Prison for Larceny, Securities Violations
Note: this press release was issued by the Division of Criminal Justice and not by the Department of Banking.
Matthew C. Gedansky, State's Attorney for the Judicial District of Tolland, and the Office of the Chief State's Attorney announced today the sentencing of a former Stafford Springs antiques dealer on larceny and security violations.
FRANK A. KANIA, age 48, of 12 Middle Road, Ellington, was convicted on July 12, 2006, after a non-jury trial in Tolland Superior Court on 14 counts of Securities Fraud and one count each of Second Degree Larceny, Issuing a Bad Check, and Failing to Register Securities with the Connecticut Banking Department.
According to court documents, Mr. Kania, a former Connecticut state trooper, sold falsely collateralized promissory notes to eight investors who suffered a loss of almost $154,000.
Mr. Kania represented that the money he obtained from the victims would be used to obtain antique furniture inventory. In fact, Mr. Kania used some of the investors' money as payment toward more than $3.5 million in loans he took out from another corporation.
Two of the victims in the case were 78-year old women.
In Hartford Superior Court today, the Honorable Judge Gary White sentenced the defendant to 10 years incarceration, execution suspended after 2 years served, and 5 years probation. During the first 3 years of probation, Mr. Kania was ordered to wear an electronic monitor under house arrest. Judge White also ordered Mr. Kania to perform 200 hours of community service during the last 2 years of probation and to make full restitution in the amount of $153,749 to the victims who invested in his business, $83,500 of which has already been paid.
The case was prosecuted by the Elder Services Bureau in the Chief State's Attorney's Office.