A suburban NY town supervisor and another town official have been charged in a federal securities fraud case tied to the financing of the town’s controversial baseball stadium. The intended baseball park was meant to be built in their town that lies northwest of New York City, about 40 miles from Manhattan.
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Both Troodler and St. Lawrence are facing charges of federal securities fraud, wire fraud, and conspiracy charges in connection with municipal bonds, the Journal News reported.
The highest-ranking public official of a NY town was charged in what is believed to be the first municipal bond-related securities fraud prosecution.
Bharara said, the accused officials in Ramapo, “kicked truth and transparency to the curb, selling over $150 million of municipal bonds on fabricated financials”.
“There were other more pressing needs than a shiny, new sports stadium”, Bharara declared. State Senator David Carlucci, an Independent Democrat, and Democratic Assemblymembers Ellen Jaffee and Kenneth Zebrowksi say they are calling for St. Lawrence’s immediate resignation to ensure the Town of Ramapo can operate effectively. “The operations of the local development corp. will pay off the bonding for the stadium and it will not be any taxpayer dollars”.
St. Lawrence, 65, and Troodler, 42, were each released on bond after court appearances Thursday. Troodler is expected to surrender to authorities, a spokesman for U.S. Attorney Preet Bharara said.
“If a regular homeowner engaged in such conduct it would be called mortgage fraud”, he said.
Outstanding attorney’s bills were never “on the books”, according to the unnamed bookkeeper for the Ramapo Local Development Corporation, of which Troodler was the executive director, according to the lawsuit.
Investigators examined the movement of money between the development agency and town accounts. “The defendants and others made materially false and misleading statements and omitted material facts regarding the finances of the town and the RLDC”, the indictment states. Joseph Poluka, Troodler’s lawyer, said his client would plead not guilty but declined to comment further.
It was not immediately clear whether St. Lawrence would continue to try to carry out the duties of his office.
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After Ramapo voters in 2010 resoundingly rejected a $16.5 million plan to finance the construction of the ballpark, St. Lawrence said the project would be built with private funds.
