Former Newtown Oil Owners

Arrested On Felony Charges

By Andrew Gorosko

Police this week arrested the former owners of the now-defunct Newtown Oil Company on multiple felony charges, apparently in connection with a scheme that bilked oil company customers out of more than $400,000 for home heating fuel that the customers never received after signing prepaid fuel purchase contracts for the 2002-03 heating season.

On Tuesday afternoon, police arrested William A. Trudeau, Jr, 44, and his wife, Heather Bliss, 32, of Westport.

Police lodged 12 charges against each of the two. The charges against each are: racketeering, three counts of first-degree larceny, one count of second-degree larceny, four counts of second-degree larceny of a victim over 60 years old, plus three counts of criminal conspiracy involving: racketeering, first-degree larceny, and second-degree larceny. Convictions on the charges could mean lengthy prison sentences for the pair.

After they surrendered at the police station and were processed on the charges, each of the two was released on $100,000 bail for arraignment September 11 in Danbury Superior Court.

Mr Trudeau is represented by Hartford lawyer Ross Garber.

Mr Garber said August 30 of his client’s situation, “Going out of business is not a crime. Honest people go out of business all the time in this country. We look forward to addressing the charges in court.”

Ms Bliss is represented by Westport attorney Andrew Bowman. Mr Bowman could not be reached for comment.

State’s Attorney Stephen J. Sedensky, III, is prosecuting the case against Mr Trudeau and Ms Bliss.

Police referred questions on the case to Mr Sedensky, who declined to discuss the specifics of the allegations against the pair. The arrests were made on warrants whose affidavits are sealed, he said.

The earliest that those affidavits may be unsealed is September 11, the date of their arraignments. However, either the defense or the prosecution may seek to keep those documents sealed, Mr Sedensky said.

The police investigation into the Trudeau/Bliss case is continuing. Newtown Detective Michael McGowan and Danbury Detective Sergeant Roger Brooks are the police investigators. Det McGowan asks anyone with information for the investigation to contact him at 270-4227.

The investigation also has been conducted by the state Department of Consumer Protection, the office of the chief state’s attorney, the office of the attorney general, and the Danbury state’s attorney’s office.

A statement issued by Attorney General Richard Blumenthal on Tuesday suggests that the two arrests stem from the activities of Newtown Oil.

In that statement, Mr Blumenthal commended authorities for the arrest of the former operators of the oil firm that allegedly entered into fraudulent prepaid home heating fuel contracts for the 2002-03 heating season.

The racketeering charges filed against Mr Trudeau and Ms Bliss come under the state’s Corrupt Organization Racketeering Activity (CORA) law, Mr Blumenthal said 

 “Today’s arrests send a strong warning that heating oil dealers abusing consumers will feel the heat of prosecution, both civil and criminal. Our law enforcement partnership has produced aggressive civil and criminal action, ensuring these alleged violators are held accountable,” he said.

The attorney general sued Newtown Oil, Mr Trudeau, and Ms Bliss in 2003, after the company allegedly entered into prepaid fuel contracts with hundreds of consumers knowing that it would be unable to honor the contacts due to severe financial problems. The company went out of business in December 2002.

Of a $260,000 settlement that the attorney general reached with Newtown Oil earlier this year, approximately $250,000 would become available to about 1,400 area oil company customers. The state would use the remaining $10,000 for its legal fees. The $250,000 of restitution represents about 60 percent of what the Newtown Oil customers are owed for undelivered fuel during the 2002-03 heating season.

The firm was formerly located at 47-49 South Main Street, a property which has remained vacant since the firm went bankrupt.

The state was unable to obtain 100 percent refunds because the company went out of business and into bankruptcy. The amount to be received by qualifying consumers will depend on how much undelivered oil is owed them. People with questions about the refund process should contact the attorney general’s office at 860-808-5400.

In a separate case unrelated to the Newtown Oil scandal, in July 2003, Mr Trudeau was sentenced in US District Court in Hartford to a 22-month federal prison term, plus restitution and fines, following his guilty pleas to federal tax and financial fraud offenses.

Mr Trudeau was ordered to pay $458,000 in restitution to the victims of his financial frauds, plus a $25,000 criminal fine.