State comptroller won't audit Jack Schnirman after $710,000 online theft
The office of New York State Comptroller Thomas DiNapoli, shown, has declined a request for an audit of the temporary loss of $710,000 by the Nassau County comptroller's office. Credit: AP / Richard Drew
State Comptroller Thomas DiNapoli has declined a request by majority Republicans on the Nassau County Legislature to audit county Comptroller Jack Schnirman's office, which temporarily lost $710,000 to an online fraudster posing as a county vendor.
"Cybersecurity incidents are prevalent in local government and school system information technology throughout our State," Elliot Auerbach, a deputy in DiNapoli's office, wrote on Feb. 5. "Theft, fraud and inappropriate access to data are among the hazards associated with these threats. At this time, we will not be conducting a formal audit of the Comptroller's Office."
Last month, legislative Republicans asked DiNapoli and Nassau County Inspector General Jodi Franzese to investigate whether proper controls are in place at Schnirman's office to block cyber crime.
The lawmakers said they had "no confidence that taxpayer funds are being properly handled."
Franzese, an appointee of the legislature, agreed to the task.
DiNapoli and Schnirman are Democrats.
Schnirman's office came under attack during a Jan. 22 county legislative hearing when Deputy Presiding Officer Howard Kopel (R-Lawrence), a Republican and chairman of the Finance Committee, questioned how scammers were able to easily access the county money.
The scammers filled out the necessary paperwork and offered a fraudulent check as evidence of the new account. The money was directed to an elderly woman’s account in Seattle, then redirected to several different accounts that were identified and frozen by investigators, according to county police investigators.
"While I am disappointed that the state Comptroller has decided not to audit the office of Nassau County Comptroller Jack Schnirman, I look forward to the results of the Inspector General's report. I will continue to do everything in my power to make sure residents' tax dollars are protected," Kopel said.
Candice Ferrette covers Nassau County government and politics on Long Island. She has been a reporter at Newsday since 2011.
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