Riverhead man, facing federal criminal charges, found dead in his home

Police are investigating the death of a Riverhead man who was facing federal criminal charges stemming from the theft of more than $10 million from his family’s contracting business.

Joseph Simonelli, 55 was found dead in his home on Kerry Court this morning, according to a Riverhead Police press release.

According to radio reports a person was found hanged at Simonelli’s residence this morning around 9 a.m.

Simonelli’s death is under investigation, Chief David Hegermiller said this morning. He was taken from the scene to the Suffolk County Medical Examiner’s Office in Hauppauge, where the investigation is ongoing pending the results of the Suffolk County Medical Examiner’s Office’s autopsy.

Simonelli was jailed on Nov. 12 on a federal charge of conspiracy to commit mail fraud — a charge that could have landed him in federal prison for 11 to 14 years. He had been held without bail in November “as a danger to the community” after prosecutors presented recorded evidence of death threats that he made to his sister, who is also a partner in his family’s business. He was released in December on a $750,000 personal recognizance bond, though he was placed under home detention and mandated to attend weekly therapy sessions for anger management issues.

Simonelli’s federal conspiracy charge was in connection with the alleged theft of more than $10 million from his family’s West Babylon-based heating and air conditioning company, F.W. Sims Co. He was the chief financial officer of the firm, which was involved with lucrative HVAC installation work at 1 World Trade Center and Yankee Stadium.

Simonelli’s relatives claim he stole more than $25 million from the company in a scheme spanning almost 15 years, according to the civil lawsuit his family members filed against him in November.

As far back as 2002, Simonelli began fabricating bills from fictitious shell companies, charging F.W. Sims for work that was never performed, according to the suit.

Money was then directed to Simonelli and several co-conspirators, including a law firm, Agovino and Asselta LLP, and his wife and his step-daughter, with whom he manages Serendipity Farm on Mill Road, according to the complaint filed in State Supreme Court.

Serendipity Farm was identified in court papers as one of the shell companies created for the benefit of defrauding F.W. Sims Co.

Simonelli purchased the 17-acre preserved farmland now known as “Serendipity Farm” in 2012 from Paul Gabrielsen. Located at the corner of Mill and Middle roads, the property has since been developed with a 20-stall barn, an indoor arena and a track for thoroughbred race horses.

His fraud afforded him to enjoy “a life of indulgence at the Plaintiff’s expense,” according to the suit. In addition to the purchase and development of Serendipity horse farm, Simonelli purchased a house on Kerry Court off of Mill Road and furnished it through a luxury home decor and interior design expert, according to the suit.

He and his wife Deborah own “an extensive list of vehicles,” including a Porsche and a Jaguar, the suit said. They made weekly trips into Manhattan, where they were provided “VIP treatment” at high-end clothing stores on Fifth Avenue, according to the suit. Deborah has acquired about 20 fur coats from these shopping sprees, which are maintained in a climate-controlled closet suite in their home on Kerry Court, according to the suit.

The alleged fraud was discovered in October 2014 when Simonelli’s brother, Patrick Simonelli, discovered a $125,000 check made out to an unfamiliar company. Upon further investigation, he found more than $3.5 million had been paid to this entity, “RHJ Industries,” from 2008 to 2014.

He quickly discovered that RHJ Industries was a shell corporation, organized solely for the purposes of embezzling the money, according to the suit.

The family hired a third-party private investigation firm, which led to the charges that Simonelli was facing before his death today.

Simonelli’s assets were frozen after his arrest in November. His attorney submitted a request on Jan. 21 to release his house on Kerry Court, which was, along with the farm, held to secure a $750,000 bond, so that Simonelli could sell it out of “economic necessity.”

The request detailed their monthly expenses, which Simonelli has been struggling to maintain since his employment was terminated in October, according to the letter.

“It is obvious that the Simonellis are in dire, critical financial straits which can only be alleviated by the sale of their home,” his lawyer says in the letter.

The house is currently on the market for sale at an asking price of $1.1 million.

A bail bond hearing scheduled for yesterday was canceled, according to online court records.

Simonelli’s attorney, Michael Cornacchia, said this morning he was not in a position to comment. He was on his way to Riverhead to meet with family members, he said.