United States Attorney's Office District of Connecticut
Press Release

NEW JERSEY MAN PLEADS GUILTY TO FRAUD CONSPIRACY IN CONNECTION WITH NHSB/NEWALLIANCE BANK IPO

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that GEORGE J. KUNDRAT, age 50, of Warren, New Jersey, waived indictment and pleaded guilty today to one count of conspiracy to commit mail fraud, wire fraud and securities fraud in connection with the New Haven Savings Bank/NewAlliance Bancshares, Inc. initial public offering. United States District Judge Janet Bond Arterton accepted KUNDRAT’s plea of guilty this afternoon in New Haven.

According to documents filed with the Court and statements made in court, KUNDRAT admitted that he participated in a scheme to illegally purchase 140,000 of shares of NewAlliance Bancshares, Inc. (“NAB”) stock during the New Haven Savings Bank (“NHSB”) conversion and initial public offering (“IPO”), and then resold the shares for his own personal profit.

KUNDRAT today admitted that, in or about January 2004, he along with several associates, none of whom were eligible to buy the stock in the IPO, participated in a scheme to buy NAB stock using the subscription rights of eligible depositors and to resell those shares at a profit.

The Government believes that while no NHSB depositor who requested shares during the IPO was shut-out of the IPO entirely as a result of this scheme, more than 2100 depositors who requested shares received fewer shares then they otherwise would have as a result of the illegal conduct.

“This ongoing investigation and today’s guilty plea demonstrates that this Office is committed to enforcing the federal securities laws and to prosecuting individuals who have not gotten the message that such conduct is illegal,” U.S. Attorney O’Connor stated.

Judge Arterton has scheduled sentencing for September 26, 2005, at which time KUNDRAT faces a maximum term of imprisonment of five years and a maximum fine of $760,000.

U.S. Attorney O’Connor further indicated that individuals who believe they are victims in this case can contact the United States Attorney’s Office by e-mail at usa-ct-vns@usdoj.gov.

This case is being investigated by the Federal Bureau of Investigation, the Securities and Exchange Commission, and the Internal Revenue Service - Criminal Investigation, with the assistance of the Federal Deposit Insurance Corporation, the United States Department of the Treasury Office of Thrift Supervision, and the Connecticut Department of Banking Securities and Business Investment Division. The case is being prosecuted by Assistant United States Attorney Michael S. McGarry of the U.S. Attorney’s Office Securities and Investor Fraud Unit.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov