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Paul J. Silvester (born 1963) is an American white collar criminal who served as Connecticut State Treasurer from 1997 to 1999. Convicted of racketeering and conspiracy to launder money, he served four years and three months in prison.

Personal life and education

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

Public service career

In July 1997, Silvester was appointed to the office of Connecticut State Treasurer by Governor John G. Rowland when incumbent Treasurer Christopher Burnham resigned to work for an investment firm. At the time Silvester was the youngest state treasurer in the US. He left office in 1999 after losing the 1998 general election to Democratic nominee Denise Nappier.

Investigation

Soon after Silvester left office in January 1999, the FBI and SEC began investigating him and his close associates while in office. 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. 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.

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.

Sentences

In 2003, Silvester pleaded guilty and was sentenced to 51 months in prison. He had faced up to 40 years in prison. The sentence was especially lenient because Silvester agreed to cooperate in taking down a wider network of racketeers and corrupt government officials.

Silvester's brother, Mark Silvester, pleaded guilty to conspiracy to solicit and accept corrupt payments. His brother-in-law Peter D. Hirschl pleaded guilty to conspiracy to launder money. George Gomes, Connecticut's Assistant Treasurer, pleaded guilty to mail fraud. Silvester's campaign manager and mistress, Lisa A. Thiesfield, was sentenced to six months of house arrest, three years of probation, and a $50,000 fine. Former Connecticut Senate Majority Leader William A. DiBella received no prison time but was forced to return illegal profits from the scheme and pay civil penalties totaling $795,000.

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.’' 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.

References

1. Starkman, Dean (1999-09-24). "Ex-Connecticut Treasurer Faces Prison After Admitting He Took Kickbacks". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-12-29.
2. "Welcome to Corrupticut: A look back at the history of corrupt politicians in Connecticut". Baltimore Sun. 2019-06-25. Retrieved 2021-12-29.
3. "SILVESTER, Atty. George A., Jr". legacy.com. Hartford Courant. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
4. Michak, Don. "Jailed former state treasurer won't contest divorce action". journalinquirer.com. Journal Inquirer. Retrieved 3 July 2018.
5. 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.
6. "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.
7. 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.
8. Santora, Marc (21 November 2003). "51 Months For Key Figure In Corruption". The New York Times. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
9. Allen, Mike (25 October 1999). "Treasurer's Downfall in Kickback Scheme Shakes Connecticut Political Establishment". The New York Times. Archived from the original on 4 July 2018. Retrieved 3 July 2018.
10. "Sentences In Treasury Scandal". Hartford Courant. May 3, 2005. Retrieved Mar 14, 2023.
11. "Mistress gets 6 months for role in Silvester corruption scheme". nhregister.com. Associated Press. March 3, 2004.
12. "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.
13. 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.
14. "Paul Silvester". bloomberg.com. Bloomberg. Retrieved 14 April 2019.

• Living people
• State treasurers of Connecticut
• Connecticut politicians convicted of crimes
• Businesspeople from Hartford, Connecticut
• Connecticut Republicans
• American white-collar criminals
• 1963 births