(CBS Connecticut) — A former Vernon resident is accused of swindling banks and the state Department of Economic Community Development out of more than $3-million.

Last month, Mohsen Youssef was arrested in the country where he now lives, Canada.

He set up a pita bread company called Amoun Pita in South Windsor. He then started borrowing money from banks and the state.

To convince state and bank officials that it was safe to give him their money, he signed paperwork certifying hat he had large amounts of money in hand.  In 2012, he told the Department of Economic and Community Development that he had more than $200,000 in his company’s bank account.

In reality, federal prosecutors say he had $33.62.

The money was supposed to go to improving the business, but federal prosecutors say Youssef really put some of the funds into his personal account, and moved some of the money around to bogus companies that he set up.


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