Former Group Insurance Commission Finance Director Pleads Guilty, Sentenced for Stealing More Than $122,000
Also Ordered to Pay Full Restitution
BOSTON – The former Director of the Finance Division of the Group Insurance Commission (GIC) has pleaded guilty and has been sentenced in connection with stealing more than $122,000 from the agency, Attorney General Maura Healey announced today.
Ennio Manto, age 52, of Braintree, pleaded guilty today in Suffolk Superior Court to two counts of Larceny over $250 and one count of Conflict of Interest.
After the plea was entered, Judge Rosalind H. Miller sentenced Manto to three years’ probation and ordered him to pay restitution in the amount of $122,349.83. The AG’s Office had recommended jail time followed by probation.
“This defendant abused his position at a state agency to steal money that was meant for insurance benefits for those working for municipal and state government,” said AG Healey. “We will continue to hold those who abuse their positions for their own financial gain accountable. We are pleased that the money will be returned to the state.”
The Group Insurance Commission is a quasi-independent state agency that provides and administers health insurance and other benefits to the Commonwealth’s employees and retirees. Prior to his termination from GIC in December 2015, Manto was the Director of the Finance Division.
In June 2015, an accountant at GIC discovered a wire payment for $72,349.83 that could not be reconciled with the GIC’s statements and internal documents. Manto acknowledged that he made the transfer, claiming it was a payment to a health plan administrator for a nonstandard report. Later, the accountant discovered that the required payment was for a different amount and not due for another year. The GIC launched an immediate internal investigation and reported the matter to the authorities.
Upon learning that the wire transfer was being looked into, Manto altered the original printout of the wire transfer by cutting out information related to Seaport Equity, a company owned by Manto, and taping in information about the health plan administrator. These documents were later found in a GIC recycling bin. The contract documents that Manto had given to the accountant as backup documentation for the wire transfer had also been altered.
Authorities subsequently confirmed that between March and June 2015, Manto made two wire transfers to Seaport Equity. Further investigation revealed that Manto made an additional unauthorized wire transfer from the GIC’s funds to Seaport Equity in March 2015 for $50,000.
“We are glad that this unfortunate chapter is behind us and in the hands of the appropriate authorities,” said the GIC’s Executive Director, Roberta Herman, M.D.
This case was prosecuted by Assistant Attorney General Kristen Stone of AG Healey’s White Collar and Public Integrity Division. This case was investigated by Daniel DeAngelis of AG Healey’s Financial Investigations Division, investigators from the AG’s Cyber Crime Division, and Massachusetts State Police assigned to the AG’s Office. The GIC cooperated fully and provided much helpful assistance throughout the investigation.