Paul J. Silvester

Paul J. Silvester is a Republican politician, businessman, and white collar criminal from Connecticut.[1]

Paul J. Silvester
81st Treasurer of Connecticut
In office
1997–1999
GovernorJohn Rowland
Preceded byChristopher Burnham
Succeeded byDenise Nappier
Personal details
Born
Paul J. Silvester

1963 (age 57–58)
Hartford, Connecticut, U.S.
Political partyRepublican

Personal life and education

Paul Silvester is the son of George and Eva Silvester of Hartford, Connecticut.[2] Silvester was married to West Hartford lawyer Christine A. Olson but the couple divorced in 2002 while he was on trial, they have two children together.[3]

Public service career

In 1997 Silvester was appointed as the Connecticut State Treasurer by Governor John G. Rowland when incumbent Treasurer Christopher Burnham retired. At the time Silvester was the youngest State Treasurer in the country. He left office in 1999 after losing his seat in an election to the Democratic nominee Denise Nappier in 1998.

Investigation

Soon after he retired the FBI and SEC began investigating him and his close associates while in office.[4] Silvester's campaign was referred by the United States Attorney to the State Elections Enforcement Commission for fundraising irregularities. The commission found that during Silvester's 1998 campaign a number of individuals connected to the campaign and Silvester had made illegal contributions to Paul Silvester for State Treasurer.[5] The commission assessed multiple civil penalties against those responsible as well as requiring parties to enter into a consent agreement.

A scheme was discovered by incoming Treasurer Denise Nappier. Nappier alleged that Silvester had moved so much of the State Retirement and Trust Fund into high-risk, long term, non-liquid private equity funds that it unbalanced the State's investment plan, increasing the risk of a long term failure.[6]

Silvester was accused of diverting State Pension and Trust Fund business to specific investment firms in return for kickbacks. These kickbacks came in a number of forms, but primarily took the form of no-work consulting and lobbying contracts provided to Silvester and close associates. The scheme was alleged to have netted $2.25 million in false fees and kickbacks.

Sentenced

Silvester pled guilty and was sentenced to 51 months in prison, he had faced up to 40 years but the sentence was especially lenient because Silvester agreed to cooperate in taking down a wider network of racketeers and corrupt government officials.[7]

The case also involved his brother Mark Silvester pleading guilty to conspiracy to solicit and accept corrupt payments. His brother-in-law Peter D. Hirschl pleading guilty to conspiracy to launder money.[8] George Gomes Connecticut's Assistant Treasurer, pled guilty to mail fraud.[9] His Campaign Manager and mistress Lisa A. Thiesfield who was sentenced to six months in jail.[10] And former Connecticut Senate Majority Leader William A. DiBella.[11]

Prison and post-release

In 2003 Silvester was ordered to serve 28 more months in prison. The U.S. Attorney's Office commented that "The sentence imposed today is not only reflective of Paul Silvester's criminal wrongdoing but also of his admission of guilt and substantial cooperation in the investigation and prosecution of other individuals involved in this treasurer's office scandal.’'[12] Post-release he went to work at Harrison, New York based metal trading company PM Recovery, Inc. and as of 2019 was their Executive Vice President of Finance.[13]

References
  2. "SILVESTER, Atty. George A., Jr". legacy.com. Hartford Courant. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
  3. Michak, Don. "Jailed former state treasurer won't contest divorce action". journalinquirer.com. Journal Inquirer. Retrieved 3 July 2018.
  4. Schneyer, Fred. "Former Conn. Treasurer Gets More Jail Time". plan sponsor. plansponsor.com. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
  5. "FY 2003-2004 Report of Complaints Investigated by the State Elections Enforcement Commission" (PDF). ct.gov. Connecticut State Elections Enforcement Commission. Archived (PDF) from the original on 15 February 2017. Retrieved 15 November 2018.
  6. Mahony, Edmund H. "DiBella A Stingy Witness: Testimony Adds Little In SEC Suit". sip-trunking.tmcnet.com. Hartford Pourtant. Archived from the original on 28 June 2018. Retrieved 6 July 2018.
  7. Santora, Marc. "51 Months For Key Figure In Corruption". nytimes.com. New York Times. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
  8. Allen, Mike. "Treasurer's Downfall in Kickback Scheme Shakes Connecticut Political Establishment". nytimes.com. New York Times. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
  9. www.courant.com, Sentences In Treasury Scandal, May 03, 2005
  10. "Mistress gets 6 months for role in Silvester corruption scheme". nhregister.com. Associated Press. March 3, 2004.
  11. "Litigation Release No. 21517 / May 5, 2010 Securities and Exchange Commission v. William A. DiBella, Civil Action No. 3:04-CV-1342 (EBB) (D. Conn.) SEC Announces Distribution of DiBella Fair Fund to Connecticut Retirement and Trust Funds". sec.gov. U.S. Securities and Exchange Commission. Retrieved 26 June 2018.
  12. Mahony, Edmund H. "Silvester To Spend 28 More Months In Jail". courant.com. Hartford Courant. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
  13. "Paul Silvester". bloomberg.com. Bloomberg. Retrieved 14 April 2019.
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