John Horvath, Annuity Fraud and Tax Evasion, Connecticut 2023

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Bristol Man Sentenced to 34 Months for Fraud and Tax Offenses

John Horvath, a 73-year-old resident of Bristol, was sentenced to 34 months in prison for defrauding clients out of approximately $1,189,200 and tax evasion, announced Vanessa Roberts Avery, United States Attorney for the District of Connecticut.

Horvath, a licensed resident insurance producer, sold annuity contracts issued by Allianz Life Insurance Company of North America to clients. Between July 2015 and April 2021, Horvath advised clients that they could achieve better rates of return through alternative investments, rather than their existing annuity contracts. He promised to broker and manage those investments for them, but instead, commingled their funds with his own and used the pooled money to pay personal expenses and repay earlier victim-investors.

Through this scheme, Horvath defrauded at least eight victims, including a widow who lost nearly $900,000. Horvath failed to pay income taxes on his substantial income from the scheme, resulting in a loss to the government of $267,739 for the 2015 through 2020 tax years.

U.S. District Judge Michael P. Shea ordered Horvath to pay full restitution and sentenced him to 34 months of imprisonment, followed by two years of supervised release. Horvath is required to report to prison on April 12 and was released on a $50,000 bond.

The matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Conor M. Reardon.

The Justice has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers.