Former State Representative Pleads Guilty to Offenses Related to Cancelled State Audit of Medicaid Provider, Bank Fraud

CHRISTOPHER ZIOGAS, 74, of Bristol, pleaded guilty today in New Haven federal court to offenses related to interference with a state audit into a Medicaid provider who engaged in health care fraud, as well as a separate bank fraud offense.

According to court documents and statements made in court, between January and June 2020, Ziogas, who served as a State Representative for Connecticut’s 79th Assembly District, engaged in a scheme in which Konstantinos Diamantis, a senior official in the State’s Office of Policy and Management (“OPM”), solicited and received corrupt payments and benefits from Ziogas’s fiancée, Helen Zervas, an optometrist and owner of Family Eye Care in Bristol, in exchange for official acts concerning a state audit of Zervas’s and Family Eye Care’s Medicaid overbilling.

As part of the scheme, in January 2020, an official with Connecticut’s Department of Social Services (DSS) provided notice that it would perform an audit of Zervas’s and Family Eye Care’s Medicaid billing.  Zervas, who knew that she had fraudulently overbilled Medicaid for medical services that she had not provided, or that were not medically necessary, sought assistance from Ziogas to prevent the DSS audit from proceeding.  Ziogas, in turn, sought help from Diamantis in his role as a senior OPM official.  In exchange for payments from Ziogas and Zervas, Diamantis undertook official acts and pressured other state officials to undertake official acts aimed at favorably resolving Zervas’s DSS audit.

On March 4, 2020, Ziogas made a $20,000 bribe payment to Diamantis.  On that date, Zervas’s attorney emailed a DSS official with a settlement offer to resolve DSS’s audit.  The next day, Zervas reimbursed Ziogas with a $25,000 check from Family Eye Care.  On March 12, 2020, Ziogas made a $10,000 bribe payment to Diamantis, and was subsequently reimbursed by Zervas.  After having been advised and pressured directly by Diamantis and indirectly by him through officials at OPM and DSS, the DSS official cancelled the DSS audit and, on May 1, 2020, accepted Zervas’s settlement proposal.

On May 12, 2020, Ziogas and Diamantis delivered a settlement check from Family Eye Care in the amount of $599,810 to DSS.  On May 15, 2020, Ziogas, through Zervas, made a final bribe payment of $65,000 to Diamantis.

Ziogas made a false statement when interviewed by federal agents during the investigation of this matter.

Ziogas also separately committed bank fraud.  Ziogas was the trustee of a client trust, identified in court documents as “Trust-1.”  In November 2019, Ziogas prepared and caused to be negotiated a check from Trust-1 in the amount of $5,500 made out to Diamantis.

Ziogas pleaded guilty to conspiracy to commit extortion under color of official right, which carries a maximum term of imprisonment of 20 years, making false statements, which carries maximum term of imprisonment of five years, and bank fraud, which carries a maximum term of imprisonment of 30 years.

Ziogas is released on a $500,000 bond pending sentencing, which is currently scheduled for February 18 before U.S. District Judge Stefan R. Underhill in Bridgeport.

Zervas previously pleaded guilty to related charges and is awaiting sentencing.

Diamantis has been charged by indictment and is awaiting trial in this matter, which is scheduled for January 30 in Bridgeport.  The U.S. Attorney’s Office stressed that an indictment is only a charge and is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorneys Jonathan N. Francis and Paul A. Riley.