Internal Police Probe Dissects Stinson/Costello Embezzlement Case

By Andrew Gorosko

An internal affairs investigation that Newtown police conducted into two former police officers’ theft of almost $200,000 from Newtown Police Union coffers found that the two officers were allowed to have too much control over union financial matters while the embezzlement was occurring during a three-year period.

In May, a Danbury Superior Court judge sentenced Andrew Stinson, 35, and Domenic Costello, 34, to each serve an effective term of six months in jail following their guilty pleas to charges of first-degree larceny in their theft of union funds between 2007 and 2010, while they served as union president and treasurer, respectively.

Stinson was elected union president in 2005. Costello was elected union treasurer in 2007.

Also, the judge ordered Stinson of Watertown to make $95,667 in restitution to the union; the judge ordered Costello of Stratford to make $95,392 in restitution.

After they get out of jail, each man will serve three years’ probation. Probation violations can result in reimprisonment. Also, each man must perform 150 hours of community service during their probations.

Both men were prisoners at Cheshire Correctional Institution on June 14.

Police Chief Michael Kehoe placed each man on paid administrative leave in October 2010 after it was learned that the police union coffers had been thoroughly depleted. Both men resigned as police officers in early 2011, well before they both were arrested on multiple felony charges in March 2011 by Danbury police, who conducted the criminal investigation into the thefts on behalf of Newtown police.

Police Captain Joe Rios oversaw the internal affairs investigation into the police union theft case.

Capt Rios said police are awaiting the court transcripts from the May sentencings of Stinson and Costello to complete their investigation.

Newtown Police Union, Local #3153, Council #15, AFSCME, AFL-CIO, currently represents 44 town police officers, but not Capt Rios or Chief Kehoe, who are covered by separate work contracts with the town.

Discovery

On October 11, 2010, Capt Rios and Chief Kehoe learned of “possible missing monies and financial irregularities within the Newtown Police Union.”

 According to the internal affairs investigation, “They [Stinson/Costello] were each responsible for stealing in excess of $90,000 from union accounts…When the theft of money was discovered in October, 2010, the union was basically out of money and in arrearage with the local [labor union] council for non-payment of dues…It’s this writer’s [Captain Rios] opinion that there was insufficient evidence to believe that any other [police] department members were connected to or had knowledge of Stinson’s and Costello’s illegal activities…The other officers who were interviewed and gave statements are cleared of any wrongdoing at this time, absent any…new information coming to our attention.”

According to the document, “The lack of accountability and oversight by the union’s executive board over the past several years compounded the actions attributed to Stinson and Costello…It was disturbing that the union’s finances were under the direct control of these two individuals and their illegal actions went undetected for such an extended period of time…Overall, there was poor financial management of monies within the Newtown Police Union and various fiduciary responsibilities were not carried out by Stinson and Costello as stated in the written [union] bylaws.”

While Stinson and Costello served as the union president and treasurer, respectively, Scott Ruszczyk and Daniel McAnaspie served as the union’s vice president and secretary, respectively. The four people comprised the union’s executive board.

Ruszczyk currently is the union president and McAnaspie currently is vice president.

“While Ruszczyk and McAnaspie were on the executive board during the timeframe when the bulk of the monies was taken, too much control and fiscal accountability was left primarily in the hands of Stinson and Costello,” according to Capt Rios’ internal investigation.

 The captain notes: that Stinson had dismissed the police union’s accountant; that the union’s members were not kept informed of key financial decisions; that the union failed to file proper documents with the state attorney general’s office’s charities division; that the union did not file proper documents with the state Department of Revenue Services as required for fundraising events held by nontaxable entities such as the police union; that the union had fallen behind in paying its dues to the labor council; and that Stinson had been made of aware of the late dues problem but did not rectify it.

The internal affairs investigation specifies a long list of violations made by Stinson and Costello concerning the police department’s policies and procedures, code of ethics, standards of conduct, and rules and regulations.

The Bee this week provided both Ruszczyk and McAnaspie with excerpts from the investigatory report, but they both declined to comment for this story. 

In a statement, Ruszczyk explained, “The union does not feel it is appropriate to comment on incomplete reports.”

Chief’s Comments

Beyond the internal affairs investigation, Chief Kehoe offered some formal comments on the Stinson/Costello case.

“It is crystal clear that the president [Stinson] and treasurer [Costello] of the Newtown Police Union failed in all the tenets of common fiduciary oversight…The theft of union treasury funds by these individuals was pervasive, ongoing, and well thought out…Their criminal behavior and zest for pocketing union funds outweighed any responsibility they owed to the union members who elected them,” Chief Kehoe wrote.

“Just as troubling was the behavior of the two other elected union officials, the vice president [Ruszczyk] and secretary [McAnaspie],” the chief added.

“Inherent in their elected duties were various responsibilities that would have provided the ‘appropriate checks and balances…’ These responsibilities were ignored…The vice president and secretary share in the failure to appropriately safeguard union funds from theft, bad investments, or inappropriate management,” the chief wrote.

Regarding the actions of Stinson and Costello, Chief Kehoe wrote, “It is abundantly evident that their criminal behavior was egregious and worthy of termination.”

“Likewise, it is abundantly evident that the inaction of the secretary and vice president with their fiduciary responsibilities is worthy of departmental notations…Their clear disregard of sound financial practices, of union officials’ responsibilities, and appropriate oversight in their capacities as secretary and vice president has brought discredit to the Newtown Police Union and the Newtown Department of Police Services,” according to Chief Kehoe.

In March 2011, Stinson was charged with one count of conspiracy to commit first-degree larceny, three counts of first-degree larceny, one count of second-degree larceny, and one count of third-degree larceny.

Stinson, who was a patrol officer, was the police department’s dog handler.

Costello was charged with one count of conspiracy to commit first-degree larceny, two counts of first-degree larceny, one count of accessory to first-degree larceny, and one count of third-degree larceny.

Costello, who was a patrol sergeant, conducted the police department’s Citizen Police Academy informational course for the public. Also, Costello holds a law degree.

Arrest warrant affidavits in the case describe the police union’s October 2010 discovery that its financial accounts were thoroughly depleted due to illegitimate withdrawals by Stinson and Costello.

During a police investigation, the two men explained that they had “borrowed” money from union accounts to cover personal expenses and that they intended to pay back the union.

“Both Stinson and Costello admitted that they did take out ‘personal loans’ to help with personal problems,” according to the court papers.