LI man charged in $3.6M city school theft

He was hired to connect 1,400 New York City public schools to the Internet.

Instead, prosecutors said, consultant Willard Lanham, of East Northport, bilked the city Department of Education out of $3.6 million between 2002 and 2008.

Authorities said he used the money to fund a lavish lifestyle -- an alleged act Mayor Michael Bloomberg called "unconscionable" during his weekly radio appearance on the "John Gambling Show" Friday on WOR / 710 AM.

Bloomberg said the funds allegedly stolen were "the public's money that should be going to educate our kids."

Lanham, who also goes by the name Ross, has been charged with a count of mail fraud and a count of theft concerning a program receiving federal funds, according to court papers filed this week by the U.S. attorney for the Southern District.

Lanham's attorney, Joseph W. Ryan, said his client was innocent. "Ross Lanham denies that he is guilty of any wrongdoing," Ryan said in a statement. "For eight years, Mr. Lanham devoted his skill as a problem-solver extraordinaire" on Project Connect and other DOE projects, Ryan said.

Authorities said Lanham, 57, used the stolen money to buy expensive cars, including a Porsche, as well as to build three high-end houses on a large plot of land in East Northport, purchase property in Bethpage and pursue an interest in a multimillion-dollar development in Bridgehampton.

He faces a maximum of 20 years in prison on the mail fraud count, 10 years in prison on the theft count and a maximum fine of $250,000 -- or "twice the gross gain or loss from the offense."

The case is being prosecuted by the U.S. attorney's office's Public Corruption Unit.

The complaint against Lanham charges that he directed $3.6 million in city Department of Education funds intended to provide Internet access to public schools to a company he owned, Lanham Enterprises.

Officials said he did this by orchestrating "the hiring of outside consultants, including his own brother," to work for him on three Department of Education projects he oversaw and that he instructed a subcontractor to pay consultants directly, while charging another subcontractor "a greatly inflated amount" for the work, pocketing the difference.

With Anthony M. DeStefano and William Murphy