Middlefield Man Sentenced For Defrauding State Employment Programs

MIDDLEFIELD, CT — A Middlefield man has been sentenced to two months in prison for defrauding state-run wage subsidy and job training programs, according to a statement from prosecutors. David Kania, 63, will also serve three years of supervised release.

Kania was the owner and operator of three small businesses, mostly in the dietary supplement and beverage industry. Kania applied for and received state subsidies for employing unemployed jobseekers, including veterans, and providing employee training from 2013 to 2018.

To receive these funds, Kania submitted false documents to the state the Connecticut Department of Labor and two Connecticut-based Workforce Investment Boards, according to prosecutors. The documents claimed that he had hired certain workers who worked for his businesses for specific periods of time, which Kania knew to be false.

Kania submitted false invoices to the Manufacturing Innovation Fund (MIF) Program for training that was never done. Through this scheme, Kania caused $941,723.24 in loss to the wage subsidy programs and $115,000 in losses to the MIF Program, according to prosecutors.

A judge ordered Kania to make full restitution.

Kania also underreported his total income on his 2014 through 2018 federal tax returns by failing to account for $299,201.50 in business funds that he used for personal expenses, prosecutors said.

He pleaded guilty last year to one count of wire fraud and one count of filing a false tax return.

Kania, who is released on a $100,000 bond, is required to report to prison on December 1.