'I thought he was the Boy Wonder': Investors testify in Jasiel Correia's corruption trial

Dan Medeiros Linda Murphy Lynne Sullivan Jo C. Goode  The Herald News 

Published Apr 27, 2021 

BOSTON — Like a Dickens novel, it was a tale of two Jasiel Correias on day six of the federal case against the former mayor.

Defense attorney Kevin Reddington portrayed the now 29-year-old Correia as an ambitious and passionate young entrepreneur.

Federal prosecutors Zachary Hafer and David Tobin painted Fall River’s youngest mayor as a slick, master con man who convinced three experienced businessmen and an orthodontist that they could make a killing as investors in his app company, SnoOwl, but used their money to fund an elaborate lifestyle that included expensive trips, gifts for an ex-girlfriend, designer shoes and clothing, a high-end sedan and paying off student loans and credit cards.

“I thought he was the boy wonder. ... I thought he was going to be the next greatest thing,” testified Rhode Island businessman Stephen Miller, one of the SnoOwl investors on Tuesday.

Miller indicated that he was very impressed with Correia when he met him by chance at the Tipsy Seagull while out on a boat trip in July 2013. Correia was at a Chamber  of Commerce function at the busy seaside bar, and introduced himself as a candidate for Fall River City Council and a successful business developer.

Miller testified that Correia told him he'd sold a tech business for a big profit while a college student and was developing a new venture in SnoOwl. Testimony on Monday revealed that this early venture was not sold, and made no big profit.

But Miller was so intrigued he would eventually invest $70,000.

Correia told him he wouldn’t take a dime of the investment money while SnoOwl was being developed, telling Miller “My payday is in the end.”

“Every time I talked to him, I was more confident everything was going great,” said Miller.

Correia’s claim that he had a proven track record in business would be the same pitch to the three other investors who testified on Tuesday, which included local orthodonist Dr. David Cabeceiras, body shop owner Carl Garcia, and two fellow businessmen, Mark Eisenberg and Victor Martinez.

Eisenberg, who said he had 50 years' experience in business, said Correia even told him that he owned several commercial buildings in the city. 

Correia owned no commercial properties in the city.

“It was pretty impressive for a 22-year-old,” said Eisenberg, who invested $25,000.

He said that he believed Correia wasn’t taking a salary and would not have invested in the start-up because “the ones who try to take a salary too early are the ones who don’t succeed.”

Defense attorney Kevin Reddington got some of the investor witnesses to agree that investing in start-ups was a high-risk move, but could potentially generate high returns.

“It’s very risky when he steals all of the money from the company,” responded a testy Miller, a remark that U.S. District Court Judge Douglas Woodlock ordered stricken from the court record.

In his opening arguments, Reddington said that as the founder of SnoOwl, Correia considered the company "his baby" that he brought to "fruition."

Miller, Cabeceiras and Eisenberg all claimed that they became concerned when in 2015 Correia announced his bid for mayor, and wondered what the future would hold for the not fully developed app.

During cross-examination, Reddington kept noting that while Correia transitioned into his role as mayor, attorney Nick Bernier, who Correia brought into the business, and Stafford Sheehan, Cabeceiras’s nephew, were supposed to be the company's CEO and COO and keep company moving forward. 

Reddington asked the investors why they decided to throw thousands of dollars at an app company developed by someone he depicted as a Nordstrom shoe salesman who was living in a “one-room loft with a kitchen” over a coffee shop in Fall River.

Investor after investor, however, testified that they never knew Correia was taking a salary, and never would have invested had they realized he was using the money to buy expensive personal items.

Reddington was quick to point out Correia also never promised to work for free.

All five SnoOwl investors questioned Tuesday acknowledged they never got any return on their investments.

More:How jury selection could affect the trial of former Fall River Mayor Jasiel Correia

Correia faces a total of 24 counts, including tax fraud in relation to his app company, SnoOwl, and extortion and bribery charges in relation to an alleged pay-to-play scheme he created with marijuana vendors looking to do business in Fall River. 

Read on for more from Tuesday's trial:

More: Tracing Jasiel Correia's fall: From entrepreneur, to mayor, to alleged corruption kingpin

Cabeceiras testimony continues for second day

Assistant U.S. Attorney Zachary Hafer began by showing Dr. David Cabeceiras some checks. Cabeceiras said a third check he wrote for SnoOwl had both the company's name and Correia's name. A fourth check brought in as evidence showed, again, two payees, including Correia. He said the fourth check May 30, 2014, and subsequent checks "I added his name and he added his name," answering he trusted Correia. Why the discrepancy? Cabeceiras said Correia told him there were two business accounts for the company. 

Attorney Nick Bernier, a SnoOwl principal, was a topic of questioning. When Bernier was brought in he wrote a business plan. In an email Cabecerias wrote, "Very nice." Cabeceiras testified his last check was written Aug. 14, 2014, for a total $145,000 but a promissory note written by Bernier only indicated a $50,000 investment. Cabecerias said he was concerned. After a business dinner at Jerry Remy's in Fall River, Bernier told Cabeceiras not to be concerned about the discrepancy, as he had the lion's share of the equity.

Cabeceiras said on March 17, 2016, he offered to become CEO but it never went anywhere. Cabeceiras said he brought in his nephew, Stafford Sheehan, who has experience in tech industry. They went to the bank with copies of the checks and discovered many had been cashed and not into any accounts. "Uncle, we have a problem with the checks," Sheehan told his uncle.

Cabeceiras talked about a meeting later when Correia was in office with Sheehan and Correia's attorney, Chris Carreiro, currently Swansea selectman. Cabeceiras said he asked earlier to reclassify his investments into a loan so Correia wouldn't be in trouble regarding the checks and would "mitigate the problem." Cabeceiras indicated that when he realized there was a problem he was concerned. "The first emotion was was kind of fear, it was almost like being deceived. Deception was in my mind."

At the end of his questioning, Hafer asked Cabeceiras, "What's the status of your $100,000?"

"It's gone," said Cabeceiras. 

Defense attorney Kevin Reddington questions Cabeceiras

In cross examination, defense attorney Kevin Reddington questioned Cabeceiras regarding how wise it was to trust a 21-year-old's company that wasn't incorporated. The doctor said that he trusted Correia to be able to handle the finances of the company.

For a second day, Reddington said at the time, Correia was living in a loft, (which he described as a room with a kitchen) above the Pink Bean coffee shop. 

Reddington brings up Cabeceiras' son Jeffrey, who Correia had befriended at Bishop Connolly and Providence College as students. Cabaceiras admitted his son didn't have good social skills.

Reddington brings in agreements related to the period after Correia was elected mayor in which he offered to step away from $1.7 million shares. In the agreements, prepared by Boston attorneys, Bernier and Sheehan had offered to take over as COO of the company. Cabeceiras testified that he had no knowledge of the agreements.

Responding to Reddington's questions about his continued concerns despite acquisition documents, Cabeceiras said that he didn't think SnoOwl was going anywhere as he never saw any financials for the company. 

Of his investment in the company, Cabeceiras said he knew there was a risk/reward, that "this money was throwaway money." 

Reddington asked Cabeceiras' if he recalled a meeting at city hall in which his son, Jeffrey became angry and threatened to go to the media and "destroy" Correia because of SnoOwl.  Cabeceiras said he didn't remember the exchange.

The value of the SnoOwl app

Prosecutor David Tobin reiterates what Cabeceiras' nephew, Rich Cabeceiras, told the dentist, that the only value in SnoOwl is the patent. Cabeceiras agreed with Tobin that Correia had allowed the patent to lapse. An agreement wouldn't allow a transfer of assets or ownership without consent. 

​Cabeceiras said he knew the company would never be sold because there was no accounting. "It was clear there were no books."

Tobin revisited Reddington's line of questioning on why Cabeceiras would trust a 21-year-old with his investments. Correia's pitch that he made thousands of dollars while in college on another business sold him on the idea that Correia's SnoOwl could be a success. In Monday's witness testimony, his former Providence College business partner indicated the company, FindIt, only made a few thousand dollars.

In re-cross, Reddington got Cabeceiras to admit he never knew how much the college business "FindIt" made when Correia sold it.

Reddington asked Cabeceiras if he knew that at one point after Correia's indictment that his family was able to get enough funds together to pay back investors. Cabeceiras said he did not. 

Once Cabeceiras was dismissed, Woodlock asked him to wipe down the jury box and joked that the doctor is the most qualified. Watching the Zoom live video, Cabeceiras appeared to be the most thorough in the cleaning. 

Judge Woodlock directions 

After a short break, Woodlock out of the sight of the jury, talked about documents and noted as an aside that the jury seems to be paying close attention and taking notes. The judge did allow jurors to keep notes through the trial.

Investor Steven Miller's testimony 

Steven Miller, who said he was an owner of an energy company and real estate company, was next up to testify. He testified he met Correia at the Tipsy Seagull restaurant in 2013 after sailing there with a group of people from East Greenwich, R.I. At the time there was a Chamber of Commerce business after hours meeting. Correia introduced himself to Miller and his group as a City Council candidate. Two of the people in the party, like Correia, were also graduates of Providence College. 

"I was very impressed, very outspoken, very articulate," said Miller, adding Correia told him about the business he and his college roommate sold as his means of support. 

Miller said he asked if he had any more great ideas and Correia introduced him to SnoOwl. Correia told him it was a multimillion-dollar idea. Miller said when he asked Correia if he was going to take a draw, Correia said, "I'm not taking a dime out of this. My payday is at the end." 

Miller decided to invest $50,000 in the company with 5 percent equity in return for his investment. 

Miller testified he received an agreement that the company and assets couldn't be sold without his consent as an investor. Miller said he was checking in every four or so weeks to see the progress of the app. "Every time I talked to him I was more confident everything was going great," said Miller.

Correia, he testified, asked him for additional investment funds. Miller said Correia was always telling him about angel investors and meetings with venture capitalists. Miller said Correia never told him he was using the money for personal expenses. 

Hafer brings up an emails between Miller and Correia where he asks for more funding to continue development and app expenses. Correia indicates he couldn't get an SBA loans because of his position on the City Council. Miller said he did not invest more money in the company.

In 2014, he said he was approached about changing the initial agreement so  that they could incorporate in Delaware to attract venture capitalists. The reason, according to Miller, it was the only way to get to the next level to secure venture capital funding in the company.

In Jan. 2015, Miller agreed to invest another $20K in the company and again with assurances from Correia in writing the money will be used to develop the app, not personal use. Miller said Correia kept up assurances that the app was about to be launched. "Then its going to the moon," said Miller.

"I thought he was like Boy Wonder," Miller said of why he invested in SnoOwl.

Miller said he would not have invested if he knew Correia was going to take a salary, adding, there was "no room for salary everything had to go into development." 

Miller said he didn't want Correia to run for mayor because Correia was the "biggest cheerleader" for SnoOwl. Miller was upset when the app was taken down calling it a "dog with fleas."

Reddington questions Miller 

Miller said he was contacted by the FBI in the summer of 2017 about his investment in SnoOwl. Miller said he called Correia and asked "what the f--- is going on here." He said Correia said that they were accusing him of using company investments inappropriately, but he hired a lawyer and they were sorting things out. 

Reddington asked Miller if he understand an investment could be risky. "It's very risky when he steals all the money from the company," responded Miller. Woodlock stepped in and struck Miller's comment from the record.

Reddington asked Miller if he know at the time Correia was running for city council he was selling shoes at Nordstrom. Miller said he did not. 

More:Opinion: 29 head-scratching moments from Jasiel Correia’s speech Tuesday

Reddington questioned Miller about his responses to an Office of the Inspector General investigation in 2017. Miller denied telling the investigator for the Inspector General he knew Correia was drawing a salary. During the interview, Miller is alleged to have said, one "cannot live on air alone." 

Citing the report from the Office of the Inspector General investigation, Reddington said that according to Miller's understanding, Correia could spend that the money he invested in the business on "anything he wanted," as long as he produced the product.

"No he could not spend it on anything he wanted," responded Miller.

In cross, Reddington returned to the IG interview and asked if he believed it was okay for Correia to use the money "to make car and student loan payments, purchase airplane tickets, to make withdrawals at casino ATM's, magazines and expensive dinners, as long as the expense was related to SnoOwl. You were fine with it," said Reddington. Miller said he wasn't fine with it.

Miller in response to Reddington, agreed that he understood that after Correia was elected mayor, Bernier and Sheehan were then in charge of the development and operation of SnoOwl.

In redirect with Hafer, Miller said he was covering for Correia in that 2017 interview with the Inspector General until he could talk with Correia.  

Correia's demeanor

During the lunch break, Correia could be seen on video at the lawyer's table with his mother and fiance and shuffling through documents. Throughout the testimony so far, Correia has appeared very engaged, watching and listening closely to each witness and jotting down notes.

Mark Eisenberg testifies remotely

Mark Eisenberg, a business coach and former business owner from New Bedford, testified via Zoom teleconferencing from Florida. He was approached by Corriea, then a 22-year-old City Councilor, about investing in SnoOwl.

The fact that this trial is occurring amid a pandemic has been clear from the start (mask break areas, wiping down witness stands, and the fact that, for the second day, more than 250 people were watching the trial remotely). Eisenberg was instructed to look at evidence that was included in a black binder, sent to him from the U.S. Attorney.

"I've worked with more startups than I can count ... the ones that try to take salaries too early are the ones who don't succeed," said Eisenberg, in response to a now-familiar question to the witnesses: "Did it surprise you Mr. Correia wasn't taking a salary?"

Tobin hammered some of Correia's expenses. "Would $700 shoes for his girlfriend been considered an expense for the normal courst of business?" he asked Eisenberg, and proceeded to ask about the $300 cologne and more. "Absolutely not," was Eisenberg's response each time.

'Abandoned by the creator'

Eisenberg testified that after Correia was elected mayor he and the other investors were so extremely concerned that SnoOwl was "not moving in the right direction." Including the company monitoring the app originally hadn't been paid and stopped working with SnoOwl. "My opinion is it was abandoned by the creator."

Reddington addressed the cologne and shoe purchases, saying they were made well before Eisenberg was brought on as an investor.

Who is logging on?

On Monday, the judge admonished Reddington because Mary Sahady, city financial services director, who is apparently on the witness list, had logged on to watch the trial remotely. All witnesses are to be sequestered. 

But as of Tuesday afternoon, a quick look through the participants includes names like Molly Bernier (attorney Nick Bernier, a former Correia associate who has been mentioned several times for his involvement in SnoOwl, has a young daughter named Molly); Mary Sahady CPA; "Gen's iPhone" (Genoveva "Gen" Andrade was Correia's chief of staff, who last year took a plea deal for her involvement in the marijauna extortion and bribery); and Stafford Sheehan (he's been mentioned several times for his involvement with SnoOwl; perhaps he's not on the witness list, but that other business associates like Chris Mello, Alex Vlahos and Chris Parayno have been called, it wouldn't be surprising).

An emotional toll

According to Associated Press reporter Alanna Durkin Richer, who is the pool reporter in the courtroom on Tuesday, indicated that as the court paused for an afternoon break, Correia’s mother appeared to be crying as they were walking out of the courtroom. Correia reportedly put his arm around her and led her into a private room with his lawyer. 

'Business suicide 101'

New witness Victor Martinez, another SnoOwl investor, indicated he didn't believe Correia would be taking a salary at the time of his investment. "Taking a salary, pre-revenue, is business suicide 101."

How many ways can you pronounce 'Jasiel'?

Correia's first name has been pronounced several ways during the trial so far, particularly by his own defense attorney. So far, jurors have heard "Jazzy-Al," "JUH-zeel," "JAY-zil," and and "Jazzle."

Carl Garcia testifies about 'charismatic' Correia

Local businessman Carl Garcia, owner of Carl's Collision, took the stand later in the afternoon. He testified that he met the "charismatic" Correia in June 2013 at an after hours Chamber event and later met him for a business breakfast meeting. "He talked about his vision for the city," said Garcia, that included his app idea in SnoOwl. 

Again, two versions of Jasiel Correia have been presented: the prosecution has painted him as a slick, ambitious, wheeler-dealer who used investor's money to pay for designer clothes, luxury hotels and a fancy car; the defense, however, keeps repeating the hard-working shoe salesman, living above a coffee house, who may not have been so hot at math, but who started a company and got himself elected at a very young age.

Garcia testified he wasn't all in with investing an initial $100,000 in SnoOwl, but paid over $33,000 in investment money between September 2013 and August 2014. Garcia also testified that he contributed another $12,000 to pay the rent for converted mill space on Anawan Street. Garcia also acknowledged that he loaned Correia another $6,500 to pay for the accountant to "clean up" the SnoOwl books with the anticipation of the company being sold, which never occurred. Garcia said he negotiated with Bernier that his investment in the company was $30,000.

Court ends early

The next witness to be called was Josh Harding, an app developer. However, the trial went quicker than they expected, and the prosecutors had sent him home, expecting that they would not get to him today. Reddington said he shared the blame for sending him home. The judge just said he doesn't want it to happen again.

The judge also explained to the jurors that they will have Friday afternoon off.

What we learned yesterday

In opening statements, Assistant U.S. Attorney Zachary Hafer portrayed Correia as a liar and a cheat, with a taste for expensive luxuries, like $300 cologne, Tiffany jewelry for his girlfriend, casinos, helicopter tours of Newport, R.I. and Rolex watches.

He said Correia took SnoOwl investors' money and "ran" and convinced voters he was a successful businessman. But it didn't end there — it continued, Hafer said, when Correia took office and saw lucrative opportunities to shake down marijuana vendors looking to do business in the city. 

"There was a price to do business in Fall River," Hafer says, explaining that marijuana businesses were forced to pay up to  $250,000 to locate in Fall River.

Defense attorney Kevin Reddington portrayed a different Correia, a hard-working kid from Fall River, working in the shoe department at Nordstrom to get by, and living "above a coffee shop."

Correia loved Fall River, Reddington said, and while smart and ambitious, he was "not good with figures and math and stuff."

The real problem, Reddington said, were people like Antonio Costa and Hildegar Camara, Correia's alleged co-conspiratos who have made deals with the government in return for their testimony. Their plea deals, Reddginton said, are contingent on "dancing the dance" with the government.

The jury — made up of 11 women and three men — heard from five witnesses Monday, all former business associates or investors of Correia's. All denied taking any salary from SnoOwl, and all denied knowing that Correia was using investor money on personal items.

Dr. David Cabeceiras, a Fall River orthodontist who said he thought of Correia as "family," testified that he handed Correia 19 checks in all to invest in SnoOwl, totaling  $145,000. Cabeceiras said that each time, Correia told him that the app needed more money to be completed, and that Cabeceiras believed his investments were building equity in the company.

His testimony ended the day; he will take the stand again today, starting at 9:30 a.m.

Interesting moments so far

Alec Mendes: Correia's former college roommate who started a company called FindIt with him, testified that he and Correia took former Providence Mayor Buddy Cianci out to dinner to the Capital Grille to promote FindIt, and Cianci made them pay.

Mary Sahady: Witnesses in the case are meant to be sequestered, meaning they cannot observe the trial. This is why Correia's father and grandmother are not present in the courtroom. After a lunch break, the judge noted that Fall River financial services director Mary Sahady, a member of the Correia administration, was logged in to watch remotely in the morning. Reddington said his private investigator is reminding all of the witnesses not to watch the trial remotely. 

Chris Parayno: Correia's one-time chief of staff, now director of cemeteries and trees, said he didn't question how Correia, was making $16,000 a year as a City Councilor, once treated him to a trip to Miami to celebrate a friend’s birthday. 

Michael Dion: Reddington referred a couple of times to Dion, the Community Development director, "running to the FBI" all the time.

COVID changes things: There is Lysol and hand sanitizer on the witness stand. Each witness gets their own mic cover and has to take it with them and wipe down the area after they are done testifying. There is an “attorney mask break area” which consists of a roped off space with a capacity of four, but the judge did remind Reddington at one point to keep his mask in place over his nose. Only 26 people are allowed in the courtroom at one time.

Keeping minds and courtroom sanitized: Just as the witnesses have to wipe down the stand themselves and remove their own microphone cover, per COVID safety guidelines, the judge reminded jurors before each break to keep their minds "sanitized" and not discuss the trial, or look up information about the case.

Anyone can watch from home: You can register with the federal court for remote access. First access the United States District Court website at https://www.mad.uscourts.gov/. Then to register to attend a particular remote hearing by going to https://forms.mad.uscourts.gov/courtlist.html. 

Pick the date of the hearing from the drop-down box and choose Woodlock as the judge in a separate drop-down box.  You can register up to two days before each court date. 

Woodlock has also determined to keep a solid daily schedule, with morning proceedings from 9:30 a.m. until 12:30 p.m. After a 45-minute lunch break, it's back to the trial at 1:15 p.m. and ending the daily proceedings at 4:15 p.m.