The federal trial of former Fall River Mayor Jasiel Correia began today in U.S. District Court in Boston with opening statements and testimony from five prosecution witnesses.
Assistant United States Attorney Zachary Hafer began the government’s opening statement to the jurors claiming that the 24 charges of fraud, tax evasion, extortion and bribery against Correia were the result of the former mayor’s “lying, cheating, stealing and shakedowns”.
“There was a price to do business in Fall River,” said Hafer. He then outlined the government’s intention to prove that Correia solicited investors in his failed SnoOwl app and used a large portion of the money for his own personal use, Hafer contends that the prosecution will prove that the development of SnoOwl was halted and that Correia owed money to the app developers while claiming to investors that the return on their investment would come with the imminent sale of SnoOwl for a large sum of money. The business was never sold.
Hafer then moved on to the government’s case against Corriea in the alleged extortion of thousands of dollars in exchange for the issuance of non-opposition letters for prospective proprietors of recreational marijuana facilities. The prosecution also alleges Correia bribed his former chief of staff Genoveva Andrade into giving him a portion of her salary as a condition of her employment. Ms. Andrade was also charged in the case but pled guilty earlier this year to conspiracy and extortion in the marijuana scheme.
Defense attorney Kevin Reddington used his opening statement to claim Correia did not commit fraud in the development of SnoOwl.
And to the allegations of quid pro quo of Correia seeking payment in exchange for the non-opposition letters for recreational marijuana licenses, Reddington claimed key prosecution witnesses Antonio Costa and Hildegar Camara, charged in the case but given immunity as part of a plea deal to testify against Correia, are out to save their own skin in exchange for a lesser prison sentence.
The first witnesses for the prosecution were personal or business colleagues of Correia testifying on their role in SnoOwl.
Alec Mendes was a former college acquaintance of Correia at Providence College and collaborated with him on an online business called Find It. He testified the company did not make much money when it dissolved, with both he and Correia splitting any remaining business income. Mendes said despite claims by Correia, the Find It website was never sold.
Chris Parayno was a friend of Correia while they both attended Bishop Connolly High School. He was recruited by Correia to be involved in both SnoOwl and Correia’s business incubator 1ZERO4. Parayno testified that it was understood that any investment in SnoOwl would be dedicated to developing the application, with no owner involved in the company receiving any compensation until enough investment money was collected to support it, or if the app made any sufficient revenue.
Christopher Mello is a software engineer who met Correia when he worked as a shoe salesman at a Providence department store. Mello worked on developing code for SnoOwl but did not receive compensation for his work.
Alex Vlahos was brought on by Correia to develop a business plan for both SnoOwl and the 1ZERO4 business incubator. He also did not receive compensation for his work and was not aware Correia had used investor money for personal use.
The final witness of the day was investor Dr. David Cabeceiras. Dr. Cabeceiras met Correia through his friendship with his son Jeffrey. Dr. Cabeceiras said because of his son’s close relationship with Correia he considered him an extended part of his family.
The prosecution led Dr. Cabeceiras through his first meeting with Correia to discuss investing in SnoOwl. Correia claimed to have experience in business development through the sale of the Find It website. He convinced Dr. Cabeceiras to invest $50,000 in SnoOwl in exchange for a 5% equity stake in the company Correia convinced Dr. Cabeceiras to invest 18 more times in the company, totaling $145,000.
Prosecutor David Tobin asked Dr. Cabeseiras if he was aware that Correia used a portion of his money not on the development of SnoOwl but to purchase a Mercedes Benz, cologne, shoes for his girlfriend and a trip to Washington D.C. Dr. Cabeceiras said he was not aware of those purchases and would not have invested if he had prior knowledge of such expenditures.
The trial ended for the day shortly after 4:15pm and will resume with Dr. Cabeceiras still on the stand tomorrow beginning at 9:30am
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