2 p.m. update: Earl O’Garro has been arrested on five counts of failure to pay wages (two felonies, three misdemeanors), authorities said. He was released on a $1,500 non-surety bond and is scheduled to appear in court on Jan. 23.
Two weeks ago, we reported that the state Attorney General’s Office had obtained a court order to seize property from Earl O’Garro Jr., an insurance businessman under federal investigation.
Assets that the office was pursuing included a Maserati, two BMWs, a Range Rover and homes in Marlborough and Bloomfield.
Now, the AG’s Office says it has a second court order, this time to go after O’Garro’s bank accounts. The order applies to nine different banks — including Bank of America and Webster Bank, said Jaclyn Falkowski, a spokeswoman for the office. It’s unclear if O’Garro has accounts at all of the banks named in the order.
The second court order also lists a Mercedes and another Range Rover as assets the office is seeking.
“The state marshal is actively in the process of executing those court orders,” Falkowski said Monday. “The marshal is in possession of two automobiles and attachments on properties in Marlborough and Bloomfield have been executed. The marshal is in the process of executing attachments on any and all known bank accounts held by Mr. O’Garro.”
The cars already seized by the office are a Range Rover and a Mercedes, Falkowski said.
O’Garro has defaulted on two state loans totaling more than $350,000. He received a $126,000 and grant package from the Department of Economic and Community Development in March 2012 to move his company, Hybrid Insurance Group, from a Windsor office park to a Hartford building owned by City Treasurer Adam Cloud and others in his family.
The Hybrid CEO then received state approval for a second, $500,000 loan last summer to expand his company — months after it had begun unraveling and just as it was about to collapse. O’Garro obtained the first $250,000 installment on that loan in early August and was in default for non-payment by late October. He never received the second $250,000 installment.
The money was supposed to allow him to hire 30 new, full-time employees for his insurance company.
Also, WNPR last week reported that the state labor department was seeking to bring criminal charges against O’Garro for non-payment of wages. We’ve also written about O’Garro’s alleged non-payment to employees at Hybrid and at a restaurant he owed with his wife in Middletown, Us Restaurant & Lounge.
The labor department said Monday that it applied for an arrest warrant, which was signed by Judge Joan Alexander. The warrant is with state police Troop H in Hartford, said Gary Pechie, the director of wage and workplace standards.
State police said Monday that the warrant has not yet been served.
Pechie said the department was seeking charges of failure to pay wages, which may be class D felonies or misdemeanors depending on the amount owed. O’Garro owes $24,529.48 stemming from five complaints from former Hybrid employees, he said.
The department also has five complaints from employees of Us Restaurant. That case, which is separate, is pending, Pechie said.