02.19.08 - AG Cuomo
Starts Investigation into 5 LI Districts
State Attorney General Andrew Cuomo yesterday started an
investigation, parallel to an ongoing federal probe, into
possible financial misconduct at five Long Island school
districts, issuing a subpoena for records at the Hauppauge
law firm of Ingerman Smith, according to a spokesman for
Cuomo and an attorney for the firm.
Lawrence Reich, a former partner at the law firm, was listed
as a partner at Ingerman Smith while five school districts
each reported him as a full-time employee to the state,
according to a Newsday investigation. Reich has denied any
wrongdoing and could not be reached yesterday.
Newsday reported Saturday that a federal grand jury in
Central Islip was looking into fraud at districts linked
to Reich.
Eastern District federal prosecutors and FBI agents on
Friday issued subpoenas to the districts - Baldwin, Bellmore-Merrick
High School, Copiague, East Meadow and Harborfields - seeking
their financial records.
An attorney for Ingerman Smith, Joseph Conway, said the
law firm had received the state subpoena late yesterday.
John Milgrom, a spokesman for Cuomo, said the state subpoena
was issued under laws giving the attorney general the power
to probe possible fraud related to state funds.
Newsday reported that Reich was able to collect a state
pension of more than $61,000 a year because of his alleged
full-time status with the districts.
Robert Nardoza, a spokesman for U.S. Attorney Benton Campbell,
declined to comment.
Conway, now in private practice in Garden City after serving
as head of the U.S. Attorney's Long Island office, said
last night that he had been hired recently to represent
Ingerman Smith in its dealings with investigators.
The state subpoena, issued by Cuomo's public integrity
division, sought firm records on Reich and his dealings
with the districts, Conway said.
He said he has been negotiating with federal prosecutors
and FBI agents over the records but that under federal law
Justice Department officials must approve the subpoenaing
of lawyers' records, which could take several days.
Conway said the state subpoena required the firm to turn
over its records by mid-March.
- Robert E. Kessler:
Newsday Staff Writer
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