On day four of testimony in the federal trial of former Mayor Jasiel Correia, prosecutors sought to convey how Correia allegedly used investors money in his SnoOwl app for personal expenses.
First up on the stand was Stafford Sheehan, who began his testimony Wednesday afternoon. Sheehan is the nephew of investor Dr. David Cabeceiras asked by his uncle to become involved in operating SnoOwl after Correia was elected mayor in 2015. Sheen had an interest in becoming CEO in early 2016 but did not after failing to receive financial and other corporate information.
During cross-examination, defense attorney Kevin Reddington used his time probing Sheehan on his outward discussions as being CEO of SnoOwl. Sheehan denied he held himself in that regard, stating he never officially assumed the role of CEO.
Next to testify was jewelry store owner Sergio Arias. He met Correia after answering a Craigslist ad posted by Correia and an associate for website development work.
Arias met with Correia and the associate and paid him to develop a website for his jewelry store. Arias paid an entity called “Snokimo” $4,000 for website development work. The website was never built.
Correia’s former girlfriend Natalie Cleveland was next to testify, remotely via Zoom. She recounted how she met Correia in 2012 when the pair interned in Washington, D.C. The pair dated from 2013 through early 2017.
Assistant U.S. Attorney Zachary Hafer showed Cleveland a series of receipts of purchases Correia made on gifts, vacation stays, and restaurants.
Among the gifts Cleveland said Correia gave her were a $675 pair of Christian Louboutin high-heeled shoes, jewelry from Tiffany Co., and two Burberry coats.
The pair traveled and stayed at lavish hotels, including the Willard Intercontinental Hotel in Washington, D.C., which cost $949 per night; One Intercontinental Hotel stay in Boston costing $1,912; and the Graham Hotel in Washington D.C.. at a cost of $412 a night.
Cleveland said Correia spent $300 on cologne for himself.
During their time together Cleveland was under the impression Correia was paying for the gifts and travel with money he received from the sale of The FindIt Network app. She recalled a conversation in which Correia said he sold the app for “a few million.” Previous testimony has revealed the FindIt only made a few thousand dollars.
The first witness after lunch was CPA Terrance Charest. He was asked by attorneys representing Correia to look at the finances for SnowOwl to determine which expenses were business-related and which ones were not.
Charest said many of the expenses Correia had claimed as business-related should not have been characterized as such. In looking at bank statements from 2014 Charest estimated that Correia used $88,000 for personal expenses. Charest said Correia said he took $132,000 for personal use in 2015.
Charest said he prepared and filed amended returns for tax years 2013 and 2014, based on information provided by Correia.
Property manager Pat Tod took the stand next. She rented Correia a condo in Newport during the winter of 2014 for which she told investigators Correia paid in cash.
She also owned the Anawan Street mill that housed the 1ZERO4 business incubator and SnowOwl. She testified that she received checks for the space from Carl Garcia, the Fall River businessman and SnoOwl investor.
Fall River Children’s Aquarium founder Melissa Ahaesy testified she met Correia while he was a city councilor and he committed to donating $5,000 to the museum. Following a period of chasing Correia for the money, Ahaesy was given a check for $3,000 which Correia said was from him and his family.
The aquarium opened in May 2016, but closed in August of 2017.
The final witness of the day was Flint Neighborhood Association President Carlos Cesar. The neighborhood group was interested in purchasing the former Davol School in an attempt to create a community center. The organization bought the building from the city for $5,121.
Correia presented the organization with a donation of $4,000. Cesar was under the impression the donation was from Correia personally. However, the check was drawn from the SnoOwl account.
Through much of his cross-examination, Reddington asked witnesses of their interaction with government investigators, asserting possible pressure to providing damning evidence against Correia.
The trial will resume tomorrow at 9:30 am. The schedule is for only a half-day session with the possibility the prosecution will wrap up the SnoOwl portion of its case. Next week the prosecution is expected to focus on the charges Correia, while mayor, bribed recreational marijuana retailers in exchange for a non-opposition letter of support.
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