After concerns arose regarding his practices as a State Marshal in New Haven, North Haven Democratic Town Committee (DTC) chairman Peter Criscuolo is being investigated by Connecticut Attorney General’s Office.

In a statement obtained Monday, Attorney General Richard Blumenthal said, “My office, in coordination with the Connecticut Department of Consumer Protection, is investigating allegations concerning State Marshal Peter Criscuolo’s handling of tax warrants. Our inquiry is active and ongoing.”

In June, an independent New Haven news publication obtained a May 2009 city audit regarding tax warrants. Private auditing firm RSM McGladrey, Inc. was hired by New Haven in 2008, according to their report, after “a series of complaints by taxpayers to the city related to the administration of alias tax warrants by the Office of the Tax Collector, and the execution of those warrants by the State Marshal retained by the Office for that purpose.”

McGladrey’s report focuses on warrants served for overdue personal property taxes by Criscuolo. As a State Marshal, Criscuolo can collect fee equaling 15 percent of delinquent bill payments.

McGladrey’s identified numerous instances in which Criscuolo potentially obtained fees greater than necessary for his services. Further, the report claims, “To compound matters, complaints characterized the conduct of [Criscuolo] as overly aggressive.”

New Haven is entitled to make jeopardy collection of taxes when accounts are delinquent, meaning that all taxes due for the fiscal year may be demanded in advance of normal billing dates, the audit points out. Accordingly, 2008 tax warrants may include taxes due from 2009.

Since McGladrey’s audit, New Haven has altered its methods of tax warrant administration. When reached Tuesday, Criscuolo said he had no comment.

LaFarge North America

A supplier of construction materials at 410 Waterfront St. in New Haven, LaFarge North America made two payments in 2008 for delinquent 2007 personal property taxes. However, they underpaid by $132.79, according to McGladrey’s audit.

An alias tax warrant was sent to LaFarge on October 3, 2008 for $4,569.05, representing the delinquency, 2009 tax due, and a $6 warrant fee. Several days later, LaForge incorrectly issued a check to New Haven for $13,426.93, representing 2009 taxes along with 2008 payments. “This check was sent back to the taxpayer without any cover letter of explanation,” according to the audit.

Later in October, McGladrey wrote, Criscuolo served a $15,679.65 alias tax warrant to LaFarge.

“The taxpayer did not receive a warrant,” according to the audit. “Criscuolo made the demand on his own stationary and verbally by telephone. Handwriting on Criscuolo’s stationary indicates that the $15,679.65 warrant was for $13,426.93 in delinquent taxes, marshal fees of $2,015 and interest and fees of $237.72.”

Questions exist as to how Cricsuolo knew exact the $13,426.93 figure, as the wrongly-filed  check was mailed back to LaFarge by the Tax Collector’s Office. “The Tax Collector was unable to explain how Criscuolo would have been aware of the amount of the erroneous check,” McGladrey writes.

“Criscuolo collected a $2,015 fee on a $132.79 delinquency,” McGladrey further alleges. “In doing so, it appears that he misrepresented the amount of the alias tax warrant to the taxpayer.”

F.J. Dahill Company

According to McGladrey, on Oct. 3, 2008 the Tax Collector’s Office erroneously issued crafting business F.J. Dahill Company, 176 Forbes Ave. in New Haven, an alias tax warrant totaling $23,515.78. Criscuolo telephoned F.J. Dahill on Oct. 7 and, the audit claims, “Threatened to seize the taxpayer’s business, despite the taxpayer’s explanation that the taxes were not delinquent.”

McGladrey states that F.J. Dahill contacted the Tax Collector’s Office and confirmed a lack of delinquent taxes owed. Criscuolo arrived at F.J. Dahill later that day and continued to request $23,515.78 plus his $3,528 State Marshal fee. The New Haven company explained that the Tax Collector’s Office said no delinquent taxes were owed.

“Criscuolo told the taxpayer that the Tax Collector was out of the office for the day and suggested that the taxpayer could not have spoken with him earlier that day,” the audit alleges. Eventually, F.J. Dahill Company agreed to pay Cruscuolo and asked him to return the following day for a check.

Cruscuolo returned next day and was presented a check payable to the city, according to the audit. “Criscuolo would not accept the check and demanded that it be made payable to him,” McGladrey alleges. “After some discussion, Criscuolo agreed that he would waive any marshal fee, and the taxpayer issued a check to Criscuolo for $23,515.78, representing the total taxes, interest, and the $6 warrant fee.”

In November, F.J. Dahill Company received a New Haven tax bill for $5,216.82. Apparently, the Tax Collector’s Office stated, only $19,987.78 of the $23,515.78 had been transferred to New Haven.

McGladrey writes, “It appears that the difference of $3,528 was converted by Criscuolo, justified perhaps as his fee for the erroneous tax warrant despite his representation to the taxpayer that he had waived his fee.”

Rite Aid

A $36,169.56 alias tax warrant for personal property was incorrectly issued to the 46 Church St. Rite Aid by New Haven on June 24, 2008. According to McGladrey, Criscuolo served the erroneous warrant in person and allegedly “threatened to seize the taxpayer’s business.”

The Rite Aid manager contacted corporate offices, who called Criscuolo and explained that such taxes were not delinquent, according to the audit. However, Rite Aid “to avoid a disruption… agreed to pay $16,143.24.”

“Criscuolo collected a $5,426 fee on an account that was not delinquent,” McGladrey claims. “He appears to have done so to a reputable business by coercion.”

PGXhealth LLC

Laboratory company PGXhealth LLC was issued an alias tax warrant on Oct. 3, 2008 for a delinquency of $852.30. However, the amount requested on the warrant was $56,837.77, representing the delinquency, taxes due in 2009 and the $6 fee.

Criscuolo delivered notice to PGXhealth LLC later in October asking for $64,837.77. A check was issued. “Crisculo collected an $8,000 fee on an $852.30 delinquency,” the audit alleges.

Several other cases examined by McGladrey also detail potential alias tax warrant abuses by Criscuolo and the New Haven Tax Collector’s Office.