Arrested Ex-Police Described Alleged Thefts As Loans

By Andrew Gorosko

Arrest warrant affidavits for Andrew Stinson and Domenic Costello on file at Danbury Superior Court describe the Newtown Police Union’s discovery last October that it was missing large sums of money due to illegitimate withdrawals from union financial accounts by the two former police officers, who were then serving as the union’s president and treasurer, respectively.

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

The court documents (available online at NewtownBee.com) detail the investigation conducted by Danbury police and Newtown police into the alleged theft of funds by Stinson, 34, of Watertown, and Costello, 33, of Stratford. Both men resigned as police officers earlier this year, before they were arrested on multiple felony charges.

According to the court papers, approximately $187,307 was stolen from police union accounts. Of that sum, Stinson is listed as being responsible for $95,668 of the missing money, and Costello for $91,639 of the missing funds.

Stinson has been arrested on one count of conspiracy to commit first-degree larceny; three counts first-degree larceny; one count of second-degree larceny; and one count of third-degree larceny.

Costello has been 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.

Danbury police conducted the investigation with Newtown police’s assistance, at the request of Newtown police.

After arresting the men on warrants on March 16, Danbury police released both on written promises to appear in court on March 25 for arraignments.

According to the court papers, after learning last October that Stinson and Costello were using union funds for their personal expenses, Scott Ruszczyk, who was then the union’s vice president, contacted both men to inquire about the allegations that were being made about them. Ruszczyk is now the union president.

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

Newtown Police Detective Jason Frank contacted an investment banker to inquire about an investment account that the union had with that bank and learned that the account no longer existed, with the account’s assets having been mailed out in three separate payments to the union, in care of then-treasurer Costello, according to the court papers.

 Last October 14, Det Frank met with Costello and Stinson at Ruszczyk’s residence.

“Stinson and Costello stated that they were using Newtown Police Union funds for personal reasons such as fighting foreclosure over the past three years or so. Both weren’t sure how much money was ‘borrowed’ but stated the funds were going to be returned. They both said that the [union] investment accounts were not touched and that no other accounts were opened,” the court documents state.

At that time, Stinson stated he would pay back an estimated $30,000 through successive $200 deductions from his police paycheck, according to the affidavits.

On October 21, Police Chief Michael Kehoe placed Stinson and Costello on paid administrative leave from the police department pending the findings of an internal investigation into their activities.

Danbury police then started their criminal investigation, with the assistance of Det Frank.

The Danbury police detectives’ investigation into the missing union money included the review of bank records, including monthly statements, copies of checks, withdrawal slips, and signature cards. The investigators reviewed endorsement signatures, driver’s license information, and account numbers to determine who received the funds from the checks that were made payable to “cash.”

Last December 6, Stinson was interviewed by detectives at the Danbury police station. Stinson told the detectives that his personal use of union funds without the union’s approval started after he had asked Costello for a personal loan and Costello told him that such a loan could be made from police union accounts, according to the court papers. Stinson told investigators that he needed money to cover personal bills.

Last December 8, Costello was interviewed by detectives. Costello stated that he had a “personality problem” that caused him to constantly try to show people that he was a big spender, by always picking up the tabs for meals and drinks, according to the documents.

“He stated he is now getting treatment for this. He stated he always believed he would be able to repay the Newtown Police Union,” according to the court papers.

In a letter submitted to the police union last October, Stinson apologized to the membership for taking money from the union’s accounts without the union’s permission, adding that he understood what he had done was wrong. Stinson promised to pay back the money that he had taken and asked for leniency from union members.

In a sworn affidavit dated January 18, Costello stated that he had begun using funds from the police union in the summer of 2007.

He stated he continued to use union funds for two and a half years, adding that the initial reason for his actions stemmed from serious personal financial problems, and that he unreasonably believed that his financial circumstances would improve.

“Costello stated that he is determined to fully reimburse the union for the funds he improperly converted for his personal use,” according to the court documents.

In a January 25 sworn affidavit, Stinson stated that his personal use of union funds stemmed from his experiencing severe financial stress, including the prospect of a house foreclosure and the repossession of vehicles, as well as medical problems that had left him unable to work for a time, thus adversely affecting his finances.

The police investigators determined that Costello violated state law in November 2007, when he issued a union check for $4,500 to a doctor. That payment, in effect, functioned as an unauthorized union loan to a police union member who had sought help from Costello in paying that doctor’s bill, the investigators found.

Costello then wrongly appropriated to himself the repayment of that loan by the union member in May 2008 and April 2009, according to the documents.

The police investigators determined that Stinson violated the law in January 2010 when he opened a savings account in the name of the Newtown Police Union without the knowledge and consent of the union, and then between January and October 2010 used that bank account to deposit 230 checks consisting of donations to the union averaging approximately $35 per check and totaling $9,660. Stinson then wrongly appropriated to himself $9,600 of the funds using his debit card, according to the investigators.

The arrest warrant affidavits document the various financial mechanisms which the two men allegedly used to divert police union funds for their own use.

Commenting on the two ex-policemen’s arrests, Police Chief Michael Kehoe said this week, “We had two individuals who allegedly lost sight of right and wrong, ethical and unethical.”

“It’s not reflective of the moral and ethical standards that the rest of the [police] department has,” he said.

Chief Kehoe said Stinson’s and Costello’s alleged actions amounted to “unethical and immoral” behavior.

After police union members became aware last October that their union’s financial accounts had become depleted, the union acted swiftly to end the problem, the police chief said.

Background

Town financial documents indicate that while working as a police officer, Costello received an overall police payment of $86,586 for the 2009-10 fiscal year, and that Stinson received an overall payment of $83,842 for that fiscal year. Those amounts reflect the men’s base salaries, overtime pay, private duty pay, and miscellaneous police-related income.

Both Stinson and Costello had prominent roles at the police department.

Stinson joined the police department in July 2001. As the police department’s dog handler, he often demonstrated German shepherd Baro’s skills to various community groups. Last year, Stinson received a certificate of commendation from Newtown police for his aid in the Watertown police’s arrest of a man who had stolen a computer from a store in Watertown. Stinson received a bachelor’s degree in psychology from Western Connecticut State University in 1998.

Costello became a town police officer in October 2003. He was promoted to the rank of sergeant in May 2009. A former school resource officer, Costello conducted the police department’s Citizen Police Academy, a public informational program that explains local law enforcement to residents and business people in the context of the criminal justice system. Costello holds a law degree.