A Milford developer has agreed to a $1 million settlement stemming from his alleged involvement in a scheme to cheat investors in the 2004 public offering of former NewAlliance Bank, authorities say.
The Securities and Exchange Commission said Gary Richetelli will give up $854,945 he reaped in the scheme, plus in prejudgment interest of $45,055 and pay a civil penalty of $100,000.Â
Richetelli did not admit or deny guilt in reaching the settlement, the SEC said.
Richetelli could not be located for comment.
According to authorities, NewAlliance’s predecessor, New Haven Savings had offered its depositors — who at the time owned the mutual savings bank — the first chance to sign up to buy stock in NewAlliance.
But according to securities regulators, a group who was not New Haven Savings depositors schemed to use straw buyers to collect shares for themselves, at the expense of legitimate depositors.
NewAlliance is now part of First Niagara Financial Group.
