Text size:

Probe of school districts' deals with lawyers grows

BY ROBERT E. KESSLER | robert.kessler@newsday.com

February 23, 2008

The investigation into allegations of financial wrongdoing at a number of Long Island school districts has mushroomed, with the New York State Attorney General's office subpoenaing the records of two more law firms and federal agents, in a parallel investigation, serving subpoenas on officials in a number of school districts.

FBI and IRS agents beginning Thursday served subpoenas on school board members and employees in a number of Long Island school districts, or called to tell the officials they were to be subpoenaed, according to sources. The exact number of districts and officials served could not be determined Friday night.

Gary Schoer, the past president of the Harborfields board, who is still a board member, confirmed Friday that he been called by federal officials and told to expect a subpoena to testify before a grand jury at the federal court house in Central Islip.

The Harborfields district was one of five that Newsday reported told state pension officials that the district's attorney, Lawrence Reich, was working full-time, entitling him to a $61,000-a-year state pension. At the same time, Newsday said his then-law firm, Ingerman Smith, was billing the districts for services.

A total of 11 school districts, so far, have been reported by Newsday to have had lawyers on their part- or full-time payrolls.

"I'm going to tell the truth," Schoer said in a telephone interview. "Nothing that was done was wrong."

Grand juries are a method of gathering information and evidence about possible crimes. To be issued a subpoena to appear before a grand jury does not imply that a person has done anything unlawful.

Joseph Dragone, the former deputy superintendent at Harborfields, who is now with the Roslyn School District, sent an e-mail to acquaintances Friday that was forwarded to Newsday. In the e-mail, Dragone said he had been "explaining to my children why FBI agents have come to my home to ask me questions."

The e-mail referred to the Harborfields Web site, where a posting said that the district had been "proactive" in attempting to correct Reich's employment situation and had reported it to state authorities.

Dragone hung up several times when a Newsday reporter attempted to contact him for comment.

Newsday reported that Reich had also been listed as a full-time employee at Baldwin, Bellmore-Merrick High School, Copiague, and East Meadow.

Robert Nardoza, a spokesman for U.S. Attorney for the Eastern District Benton Campbell, declined to comment on his office's investigation.

A spokesman for New York State Attorney General Andrew Cuomo said Friday that the attorney general had subpoenaed records at two more law firms. John Milgrom said that the firms were Jaspan Schlesinger and Hoffman and Ehrlich, Frazer and Feldman, both in Garden City.

The Jaspan subpoena asked for the firm's records involving partner Carol Hoffman and her dealings with school districts; the Ehrlich subpoena asked for the firm's records involving partner Jerome Ehrlich and his dealings with school districts.

Newsday reported on Thursday that Hoffman and Ehrlich, at various times, had been listed as employees at a number of school districts while their firms were paid a retainer fees.

Last week, Hoffman said she had not been taking a state pension and declined further comment. Ehrlich, who is drawing a state pension of $34,000 a year, said his being listed as a district employee had been a "prevalent practice."