A federal grand jury in New Haven has indicted Konstantinos “Kosta” Diamantis and Christopher Ziogas on charges related to the cancellation of a state audit of a Medicaid provider involved in health care fraud. Acting United States Attorney for the District of Connecticut, Marc H. Silverman, along with FBI Acting Special Agent Anish Shukla and IRS Criminal Investigation Special Agent Harry T. Chavis, Jr., announced the 18-count indictment.
Diamantis, 68, from Farmington, served as Deputy Secretary of the State of Connecticut’s Office of Policy and Management. Ziogas, 73, from Bristol, was a State Representative for Connecticut’s 79th Assembly District. Both appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and pleaded not guilty to all charges.
The indictment alleges that between January and June 2020, Diamantis received corrupt payments from Helen Zervas, an optometrist and owner of Family Eye Care in Bristol. Zervas sought assistance to prevent an audit by the Department of Social Services (DSS) concerning her fraudulent Medicaid billing practices. Ziogas allegedly facilitated this scheme due to his relationship with Zervas.
According to the indictment, on March 4, 2020, Ziogas paid $20,000 to Diamantis as a bribe. The following day, Zervas reimbursed Ziogas with a $25,000 check from Family Eye Care. Another bribe payment of $10,000 was made on March 12 by Ziogas to Diamantis and later reimbursed by Zervas.
After pressure from Diamantis through state officials at OPM and DSS, the DSS audit was canceled on May 1, 2020. Subsequently, a settlement proposal from Zervas was accepted by DSS.
Further allegations include a check delivery from Family Eye Care worth $599,810 to DSS on May 12 and another bribe payment of $65,000 made on May 15 by Ziogas through Zervas to Diamantis.
Both defendants are accused of making false statements during FBI interviews regarding this investigation. Additionally, Diamantis failed to report $95,000 in corrupt payments on his tax return for 2020.
Ziogas faces separate bank fraud charges as trustee of a client trust known as "Trust-1." In November 2019 he allegedly issued a check for $5,500 payable to “Kosta Diamantis.”
The charges against both men include extortion under color of official right with potential imprisonment up to 20 years; bribery carrying up to ten years; conspiracy charges; making false statements; filing false tax returns; illegal monetary transactions; and bank fraud carrying varying maximum sentences.
Acting U.S. Attorney Silverman emphasized that an indictment is not evidence but merely allegations until proven beyond reasonable doubt.
This case is investigated by the FBI and IRS Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Jonathan N. Francis and David E. Novick.