Connecticut woman gets 2 3/4 years for defrauding husband's company

Jan. 10—A Windsor woman who defrauded more than $630,000 from the startup company of which her husband was co-founder and CEO — and more than another $78,000 from online lenders by obtaining unauthorized loans in the company's name — was sentenced Tuesday to 2 3/4 years in federal prison, authorities said.

FRAUD SENTENCE

DEFENDANT: Margaret Boisture, 51, of Windsor

GUILTY PLEA: Wire fraud

SENTENCE: 33 months in prison, followed by two years of supervised release; ordered to pay full restitution and $7,100 fine

The sentence imposed on Margaret Boisture, 51, by Judge Omar A. Williams in U.S. District Court in Hartford was at the bottom of the range recommended by federal guidelines.

Boisture has a medical condition that may be multiple sclerosis, and prosecutor David E. Novick said in his sentencing memorandum that it might be appropriate to lessen her sentence due to her medical-care needs.

But the prosecutor argued that she should receive "meaningful imprisonment." He questioned defense lawyer Jeremiah Donovan's claim that "it seems highly likely" that Boisture's "anomalous behavior" in 2016 through 2019, when most of the fraud occurred, was due to the onset of MS.

One of the behavioral changes that can be associated with MS is "disinhibition," which can lead to "socially disruptive and morally unacceptable" behavior, though a scientific study the defense lawyer cited found that in only 13% of cases.

The prosecutor replied that the claim that MS caused Boisture's criminal behavior was based on "unproven suppositions," starting with the belief that she has MS, which he said remains unclear.

Although MS may cause a person to lose inhibitions against impulsive behavior, the prosecutor argued that Boisture's crime wasn't impulsive.

"The intricate nature of the fraud, including the many fraudulent transactions and numerous false documents to hide the scheme, suggests intentionally devious — rather than impulsive — behavior," he wrote.

Boisture, who has been intensely involved in breeding dogs and competing in dog shows, is also facing misdemeanor charges of cruelty to animals and operating a kennel with a suspended or revoked license in Hartford Superior Court.

That case has brought her extensive public attention in early 2020. An online petition demanded that her seized dogs be returned, and an online fundraiser produced thousands of dollars for her.

In the federal wire fraud case, the main victim was ZoneFlow Reactor Technologies, based in an office on Bloomfield Avenue in Windsor, whose business is developing and commercializing a technology that improves the efficiency of producing hydrogen from methane and steam.

She began working for the company in 2014. She was authorized to issue checks with only her signature and "functioned as ZoneFlow's chief financial employee with little to no oversight," the prosecutor wrote.

In the fraud, which ran from about October 2016 through February 2020, she wrote company checks to herself, used company money to pay personal credit-card bills, and obtained unauthorized loans from online lenders, increasing the money available for her to divert, the prosecutor explained.

She reported false cash balances to management and claimed vendors had been fully paid when they had actually received only partial payment, he added.

After the fraud was discovered, Boisture's husband resigned as CEO of ZoneFlow and surrendered his shares of its stock. As part of her plea agreement, Margaret Boisture also surrendered her stock in the company, which agreed to accept the couple's stock as full restitution.

The sentence includes a requirement that Boisture make restitution to the online lenders as well, pay a $7,100 fine, and spend two years on supervised release, similar to probation, after her release from prison. She must report to prison by March 13.

For updates on Glastonbury, and recent crime and courts coverage in North-Central Connecticut, follow Alex Wood on Twitter: @AlexWoodJI1, Facebook: Alex Wood, and Instagram: @AlexWoodJI.

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