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Attorney, investor get $1.3 million in settlement of suit against former Melville company and former Nassau DA, papers say

Nassau County District Attorney Kathleen Rice is seen

Nassau County District Attorney Kathleen Rice is seen on Tuesday, November 4, 2014 in Garden City. Credit: Howard Schnapp

A Smithtown attorney and his investor client will get $1.3 million from the settlement of a suit they filed claiming they were arrested because a former Long Island company in a dispute with the client had made political contributions to the campaign of the former Nassau district attorney, according to court papers.

The attorney, Robert Del Col, and his client, Leftheris Doukas, formerly of Long Island, had filed the federal suit after a messy financial dispute between Doukas and the company, DataTreasury.

Del Col and Doukas were charged with extortion after a sting in which then-Nassau District Attorney Kathleen Rice's office said they were trying to shake down DataTreasury. Del Col said at the time that he and Doukas were only trying to settle a patent matter.

The criminal case against Del Col and Doukas was dismissed in 2010. In 2013, another judge threw out a suit Doukas filed against DataTreasury, formerly in Melville and now in Texas, over his investment in the company's check-processing technology.

The federal civil suit for false arrest filed in 2011 in Brooklyn sought $185 million in damages.

"It's justice," Del Col said Monday, adding that the financial payout left him "way before the curve."

The attorney who represented Rice and other county officials, Daniel Bartoldus of Islandia, said neither Rice nor anyone with the county will be involved in paying out the money, adding that he couldn't say more.

Rice, now a member of Congress, and others in her office have strongly maintained that the arrests had nothing to do with political contributions.

Scott Mollen, of Manhattan, one of the attorneys for DataTreasury, said he could not comment on who agreed to pay the $1.3 million, but said the company is "delighted."

"This matter has been resolved without any admission of . . . wrongdoing," Mollen said.

The settlement papers do not say who will pay out the money or in what proportion.

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