2 charged in scheme to steer Hempstead school food contracts, feds say

Two Long Island women have been indicted on federal charges of steering more than $1.2 million in food service contracts for Hempstead schools to a company controlled by one of the defendants in what an official said was a kickback scheme that used the school district as "their own piggy bank."  

Sharon Gardner, 56, of Lindenhurst, the former director of food services for the Hempstead Union Free School District, and Maria Caliendo, 57, of Elmont, owner of food service providers Smart Starts NY Inc. and Prince Umberto’s restaurant in Franklin Square, were charged in the indictment with conspiracy to commit honest services wire fraud. Caliendo was also charged with making false statements to a federal agent who was investigating the alleged scheme. 

Both defendants pleaded not guilty to the charges at their Thursday afternoon arraignments before U.S. District Court Judge Joanna Seybert in federal court in Central Islip. 

Both were ordered released on $100,000 unsecured bonds. 

Caliendo’s attorney, Joseph Benfante of Staten Island, said after the arraignment: “My client is a hardworking woman who provided excellent services supplying local schools with meals, second to none. I feel she will eventually put this behind her.”

The attorney for Gardner, Philip Branigan of Holbrook, declined to comment.

 “As alleged, with little regard for the taxpaying public, the defendants secretly steered lucrative food service contracts to themselves and then illegally shared the profits,” U.S. Attorney Breon Peace said in a statement. “This Office will continue to vigorously investigate and prosecute those who attempt to corrupt our public institutions through illegal bribes and kickbacks, as well as the officials who enrich themselves at the expense of the public they serve.”

Nassau County District Attorney Anne Donnelly, whose office helped in the probe, said, "Instead of following the legitimate bidding process for a food services contract, the defendants allegedly used the Hempstead School District as their own piggy bank."

Sylvia King-Cohen, a spokeswoman for Hempstead schools, said in a statement: “The District is fully aware of the investigation and the District has been fully cooperating with authorities in this matter. The individual has not been employed with the district since 2018." 

According to the indictment, between January 2017 and March 2019, Gardner, while working as the food services director for Hempstead schools, steered more than $1 million in sole-source breakfast contracts to Caliendo’s company, and in return Caliendo paid Gardner more than $121,313.60 in kickbacks, which she used to purchase international vacations, a leased vehicle and home furnishings.

Authorities allege that the kickbacks were deposited into a bank account created in the name of one of Gardner’s close family members, identified in the indictment as "co-conspirator #1," in order to conceal the corruption. Gardner allegedly withdrew about $13,000 in cash from the account, authorities said.

During the 2016-17 school year, Gardner "used her official position to advise and persuade," school district officials that Caliendo's "Smart Starts" company should avoid the required competitive bidding procurement process because the company qualified as a "sole source exception," according to the indictment. While the district required competitive bidding before awarding contracts, it allowed for exceptions when it determined the goods or services could only be procured from a single source. 

"Based principally on Gardner's endorsement," the indictment said, the school district purchased prepackaged breakfasts for students from Caliendo's company for the remainder of the year.

During the next school year, the indictment said, Gardner again used her official position to award a contract providing breakfast to the company again, despite receiving three other bids that were less expensive. 

Caliendo, in what authorities said were voluntary interviews with investigators, made “materially false statements” about the nature of the payments, “falsely claiming that they represented repayment for a startup loan from Gardner’s family member, despite having received no capital contribution, work or labor from that individual,” authorities said.

If convicted, the defendants face up to 20 years of imprisonment for the conspiracy to commit wire fraud charge.

Gardner and Caliendo are due back in court on July 19. 

With Craig Schneider