Former town supervisor pleads guilty to wire fraud involving funds meant to help the town recover from Hurricane Irene

New York State Comptroller Thomas P. DiNapoli announced that Kory O’Hara, formerly the Town Supervisor of Prattsville, pled guilty today to wire fraud in connection with a grant extended to Prattsville in the wake of Hurricane Irene. 

The announcement was made by New York State Comptroller Thomas P. DiNapoli; United States Attorney Carla Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); John Pias, Special Agent in Charge of the Detroit Field Office, Department of Homeland Security, Office of Inspector (DHS-OIG); and Christina Scaringi, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region (HUD-OIG).

“Kory O’Hara violated the trust of his community and his duty as Town Supervisor by stealing funds that were meant to help the town recover from Hurricane Irene,” said State Comptroller DiNapoli. “Thanks to my partnership with United States Attorney Carla Freedman and federal law enforcement and agencies, O’Hara has now been held accountable for his fraudulent, selfish actions.”*

In August 2011, Hurricane Irene caused significant damage to the town of Prattsville, resulting in the issuance of millions of dollars in rehabilitation grants to Prattsville and its residents. As Town Supervisor, O’Hara entered into various grant agreements, including with the New York State Housing Trust Fund Corporation. 

In pleading guilty, O’Hara admitted that between 2013 and 2015, he obtained false invoices from a Prattsville-based modular home business, Moore’s Homes, purporting to reflect construction work performed on O’Hara’s automotive garage, O’Hara’s Service Station, which Moore’s Homes did not perform. O’Hara issued checks to Moore’s Homes reflecting payment on the invoices, but Moore’s Homes returned all of the money. 

O’Hara, who was Town Supervisor at the time, then submitted the false invoices and checks to Prattsville and the New York State Housing Trust Fund Corporation to fraudulently obtain $24,915 in grant proceeds under the New York Main Street Program. 

United States Attorney Freedman stated: “The New York Main Street Program was designed to make sure that grant money would be used to rebuild Prattsville in the wake of Hurricane Irene.  As Town Supervisor, O’Hara knew the rules, but chose not to follow them.  Instead, he took grant money fraudulently.  We will continue to hold public officials accountable who, through fraud, put their own interests above those of their constituents.”

O’Hara faces up to 20 years in prison; a term of post-imprisonment supervised release of up to three years; and a maximum fine of $250,000. He will also be required to pay $24,915 in restitution to the State of New York. 

O’Hara’s co-defendant, Stephen Baker, 71, of Prattsville, previously pled guilty in Prattsville town court to offering a false instrument for filing, a Class A misdemeanor, and the federal charges against him were dismissed. 

This case was investigated by the Office of the New York State Comptroller, Division of Investigation; FBI; DHS-OIG; and HUD-OIG, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.

* Act of this nature are sometimes characterized as Jobbery, the improper use of public office or conduct of public business for private gain. Click HEREto access the Mirriam-Webster definition of Jobbery

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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.state.ny.us/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

Tolling the Statute of Limitations in consideration of the impact of COVID-19

Barring any tolls or suspensions, a petitioner ordinarily would have had to file a timely cause of action subject to the relevant statute of limitations. In this action the Appellate Division considered the impact of COVID-19 pandemic on a statute of limitation.

Here the critical element was then-Governor Andrew M. Cuomo signing of Executive Order No. 202.8 in response to the public health crisis occasioned by the COVID-19 pandemic. As relevant in this action, that Executive Order "tolled" any "specific time limit for the commencement, filing, or service of any legal action, notice, motion, or other process or proceeding, as prescribed by the procedural laws of the state, . . . until April 19, 2020."

This tolling of the relevant statute of limitations was extended through several subsequent Executive Orders, the last of which remained in effect until November 3, 2020.

In this action Petitioner contended that the Executive Orders effectively extended the statute of limitations, as relevant here, "228 days (the amount of time the Executive Orders remained in effect) [which] should be added to the date on which the statute of limitations would have otherwise run for filing a timely petition. 

Citing Chavez v Occidental Chem. Corp., 35 NY3d 492, the Appellate Division, Third Department, said it was not persuaded by this argument, noting that, as explained by the Court of Appeals, "[a] toll does not extend the statute of limitations indefinitely but merely suspends the running of the applicable statute of limitations for a finite ... time period; ... the period of the toll is excluded from the calculation of the time in which the [petitioner] can commence an action [or proceeding]."

Referencing the Appellate Division, Second Department's decision in Brash v Richards 195 AD3d 582,  the Third Department noted that the Executive Order initially expressly used the word "toll" and, "although the . . . executive orders issued after [that one] did not use [that same word, they] all ... stated that the Governor 'hereby continue[s] the suspensions, and modifications of law, and any directives, not superseded by a subsequent directive,' made in the prior executive orders."

In this instance, said the court, Plaintiff filed his petition a week too late, rendering the proceeding time-barred, and affirmed the dismissal of the Plaintiff's petition.

Click HEREto access the text of the Appellate Division's decision.

Lunch and Learn with the Advocate for Injured Workers

The Workers’ Compensation Board (Board) continues its 2022 Lunch and Learn webinar series tomorrow, and there is still time to register!

On the dates listed below, the Board’s Advocate for Injured Workers will present a webinar on the basics of the workers’ compensation system, including employees’ rights if they become injured or ill on the job. The one-hour presentation will also cover:

• Employees’ benefits under workers’ compensation
• How to file a claim
• How to get help with your claim if needed
• Tips and best practices for injured workers
• Information to be aware of regarding COVID-19 claims

The sessions are free and there will be time at the end for questions. Register here. 

Please note, when you select the registration link, you will be taken to a general information page. You must select 'Register' on the left side of that page to sign up.

Wednesday, July 20, 2022
12:00 P.M. - 1:00 P.M.

Wednesday, August 17, 2022
12:00 P.M. - 1:0

Click below for

More information

Visit the Advocate for Injured Workers section of the Board’s website for additional resources.

You can call the Advocate for Injured Workers at (877) 632-4996 or email advocateforinjuredworkers@wcb.ny.gov.

Having trouble?

If you are having trouble registering or attending this webinar, check out these Webinar FAQs.

Daughter sentenced for stealing deceased mother's New York State Retirement System pension benefits

On July 15, 2021, New York State Comptroller Thomas P. DiNapoli announced the sentencing of Leslie Schwinzer, of Knoxville, Tennessee, for stealing pension benefits in checks that had been issued to her deceased mother. Schwinzer, 46, was sentenced on July 14, 2022 to pay over $56,000 in restitution and serve 8 months home detention and 2 years’ probation by the Honorable Thomas A. Varlan in United States District Court for the Eastern District of Tennessee at Knoxville.

“Leslie Schwinzer lied about her mother’s death in order to collect her pension checks and steal from New York state's retirement system,” DiNapoli said. “Thanks to my partnership with the U.S. Attorney’s Office for the Eastern District of Tennessee, we uncovered this fraud, and Ms. Schwinzer has now been held accountable for her crimes.”

On March 10, 2022, Schwinzer pleaded guilty to a charge of one count of wire fraud. She admitted that she failed to notify the New York State and Local Retirement System (NYSLRS) and Social Security Administration (SSA) that her mother had passed away on July 3, 2018. All pension payments should have stopped after her mother’s death.

Instead, Schwinzer received $92,222.55 in NYSERS checks and Social Security payments into a joint account she held with her mother that she was not authorized to receive.

Schwinzer did not stop withdrawing the money from the account until a bank representative contacted her on December 19, 2019 to tell her that the bank had been informed of her mother’s passing. Schwinzer lied in response, stating: “No, she’s fine.”

SSA recovered the funds it had paid into the account after Schwinzer’s mother’s death.

This prosecution is the result of a joint investigation by the New York State Comptroller’s Office, the Social Security Administration Inspector General’s Office and the United States Attorney for the Eastern District of Tennessee.

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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. Individuals may report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDEsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMjA3MTUuNjA4NDE2MzEiLCJ1cmwiOiJodHRwczovL3d3dy5vc2Muc3RhdGUubnkudXMvaW52ZXN0aWdhdGlvbnM_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5In0.p1_VcgkfEZA5cSBBJi2Tpsh3OJoGTEmwGJ_8qouGkec/s/902060842/br/141136411008-lhttps://www.osc.state.ny.us/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

 

Placing disciplinary hearings and decision making with an external Police Accountability Board

Click on the text shown below to access the article published by the Rochester Beacon July 14, 2022. 

Making accountability work - Rochester Beacon