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Cuomo expands state probe of public payrolls

Cuomo's office sends letter to professionals on public payrolls who raised 'red flags'

BY SANDRA PEDDIE | sandra.peddie@newsday.com

6:49 PM EDT, July 15, 2008

In another expansion of the state's investigation, New York Attorney General Andrew Cuomo's office has sent out approximately 200 letters statewide -- about 100 of them on Long Island -- to professionals on public payrolls whose employment arrangements raised "red flags" to investigators because they may be improper, state officials said Tuesday.

More than half of the 200 letters, which seek specific information about jobs and benefits such as pension credits, have been sent to lawyers. The rest -- in a significant expansion of Cuomo's investigation -- have gone to civil engineers, accountants and doctors who have been employees of local governments and school districts. The names of the recipients of the letters on Long Island could not be learned.

Cuomo's office launched the statewide investigation into private contractors who improperly secured public benefits after Newsday reported in February on the case of attorney Lawrence Reich. Five school districts falsely reported Reich as a full-time employee at the same time, helping him secure a public pension of nearly $62,000 and health benefits from the state for life. Reich's pension has since been revoked.

As part of his investigation, Cuomo has issued hundreds of subpoenas statewide and, on Long Island, held a public hearing to determine the extent of the problem and to discuss possible solutions. Last month, the Assembly and State Senate overwhelmingly approved pension reform legislation.

Tuesday's announcement that 200 letters have been sent out statewide seeking more information is yet another ratcheting up of Cuomo's probe. For the first time, Cuomo's office disclosed that investigators are also looking at individuals other than attorneys, such as accountants.

"We have found waste, fraud and abuse in all corners of the state regarding public benefits improperly awarded to outside consultants. This is a significant step in the expansion of the investigation," said Cuomo spokesman John Milgrim.

Investigators are zeroing in on people who are or have been on multiple public payrolls simultaneously and who have private business or employment in addition to their public jobs, officials said.

They identified those individuals through a database built with information obtained from previous document requests to local governments statewide. In addition to Long Island, letters have gone to villages, towns and cities in Westchester County, and to Buffalo and Albany.

The attorney general's letters are asking the professionals to list and describe all public and private employment since 2000, the hours worked in each job, and all public pension payments, pension credits and health benefits obtained from each public position.

The recipients of the letters have until July 21 to reply, according to the letter.

"If we do not hear from you regarding this matter on or before July 21, 2008, we will proceed with our investigation and may take action against you," the letter says.