Village Of The Branch Makes Changes After Audit

By Pat Biancaniello

New York State’s Office of the Comptroller recently completed an audit of Village of The Branch for the period June 1, 2011 – October 31, 2012. The audit, addressed the issue “Has the Board delegated discretionary functions to independent contractors?”

The answer turned out to be yes.

Village of the Branch used an independent contractor, Mr. Gerard Harris, as Village Building Inspector. Compensation included an $8,000 base salary and as much as 50 percent of certain inspection fees.  This resulted in compensation of $84,197 with approximately $73,000 coming from fees during the audit period. 

According to the report, a village may retain professionals as independent contractors to advise and assist and to perform functions that are ministerial. A village may not, “unless expressly authorized by statute, a village may not contract with a private party to perform village functions that involve their performance of police powers or other discretionary functions.”

A building inspector has responsibility for issuing permits, examining premises, enforcing laws that deal with building construction and issuing notices and orders to enforce compliance. Building Inspectors also collect permit fees. 

Auditor’s made the following recommendation:  The Board should ensure that anyone performing discretionary functions, such as fee collections, police powers and building inspections on behalf of the Village meets all the requirements for holding Village office, including being properly appointed to the office, taking and filing an oath of office, meeting residency requirements and being compensated by salary through payroll with appropriate deductions. No one who performs these functions should be engaged as an independent contractor. See report Village of Village of the Branch.

Trustees of Village of the Branch agreed with the report. Mayor Thomas Keon, in a letter to Mr. McCracken Office of the State Comptroller wrote, “We agree with the findings therein and will implement the recommendation.  Beginning with fiscal year 2013 -2014 the building inspector will become and employee of the village and be compensated by salary through payroll with appropriate deductions. A local law will be enacted allowing residence in Suffolk County.” 

According to Newsday, on April 9th Harris was hired by Village of the Branch at an annual part-time salary of $30,000.

Dix Hills Man Arrested And Indicted For Tax Fraud

Owner of Multiple New York Construction Companies Indicted for Tax Fraud

Eric Anderson, of Dix Hills, N.Y., was arrested today following his indictment on April 25, 2013, on numerous tax crimes, the Justice Department and Internal Revenue Service (IRS) announced.

According to the indictment, Anderson owned three construction companies in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. As alleged, Anderson corruptly endeavored to obstruct the IRS between 2006 and 2008 by using a check cashing service to cash over $10.5 million of gross receipts checks paid to his construction companies. He concealed his check cashing activities from his tax return preparer so that the income was not included on the companies’ tax returns. Anderson paid his employees in cash while failing to collect and pay over to the IRS employment taxes. He also diverted cash receipts earned by his companies for his own personal use. Finally, after learning of the criminal investigation, Anderson shredded business records and lied to IRS investigators about his use of the check cashing service.

The indictment also alleges that Anderson filed a false 2006 corporate income tax return for Anderson Trim and failed to file multiple years of employment tax returns, corporate income tax returns, and individual income tax returns. Anderson faces a potential maximum sentence of 94 years in prison and a potential fine of up to $5,300,000.

A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division. 

Town Board Meeting Was A Blast

By Pat Biancaniello

Speakers from the Old Northport - Lawrence Road Task Force  waited hours for their turn to address the town board at the April 25th meeting. When the time came for them to speak they praised, pleaded, and blasted the board.  Speaker after speaker spoke with passion about health concerns, declining home values and deplorable conditions caused by illegal activities by businesses on Lawrence Rd.  

Members of the task force came out to seek assurances from board members that they would not change zoning for the area. A change in zoning, they articulated, would be rewarding those who have violated the laws of the town with disregard to the health and well-being of residents.

The town is working to create a zoning ordinance for the area that would prohibit the obnoxious and illegal operations that currently exist.  “Give us time” - Supervisor Vecchio, Town Attorney, John Zollo, Planning Director Frank DeRubeis called on the residents to be patient.  Board members explained that they have been developing a strategy that would have the best chance for success in the courts. There was praise on both sides of the argument for Zollo’s recent success at the KPE site where a temporary restraining order (TRO) has been in place and has been effective.  Audience members remained skeptical. 

Zollo explained that his approach is to have a zoning ordinance plan in place to offer to the court, thereby increasing the likelihood of closing down the illegal operations.  He asked that the residents give him time. “This area has been neglected for 20,30, 40 years.” 

The residents were not happy. There is not a lot of trust by members of the task force that a new proposal, which board members have yet to review, which calls for an “industrial” zone, will be more effective than the current plan.  Resident Larry Shaw was one of the many speakers who opposed any new zoning  ordinance, “This board is not here to figure out what should be done with that land, this board is here to enforce the current zoning.” 

Residents pressed board members for answers.  Why would anyone consider a new zoning ordinance and believe that business owners who violate current laws will not violate a new code? Again, Zollo urged residents to give them time, reminding them that these illegal activities have been going on for many years. Resident’s frustration grew palpable.”Enforce what you have in place” was the most common expression of the night. The odors that are emanating from these sites are a recent development, according to one speaker. Again, the request was made to enforce current zoning code and not to reward illegal business activity.

 “Who’s going to be affected by this? it’s us” said Mr. Shaw….

Smithtown's Foodie To Do List

What’s Cookin’? – Smithtown

By Nancy Vallarella

Smithtown’s Foodie To Do List

May’s calendar is turning out to be filled with food, fun and fundraising throughout Smithtown.

Jump starting May’s many events is Long Island RESTAURANT WEEK; Sunday, April 28 for eight days ending on Sunday, May 5. Participating restaurants will offer a three-course prix fixe for $27.95 every night they are open except Saturday when the menu may only be offered until 7 p.m.  This is a great opportunity to try that local restaurant you never seem to get to. Reference Smithtown Matters Food and Restaurant Guide for contact info and make your reservations today.

Stop into New York Stuffed Cone in Saint James on Thursday, May, 2  from 4pm -8pm.  A percentage of all sales will go to St. James Elementary School PTA.  The class that registers the most attendees will win a… Sundae Party! 

Our angels from the Smithtown Children’s Foundation have partnered with Yogurtini on Middle Country Road in Smithtown.  They will be honoring the memory of Accompsett Elementary teacher Mike Denaro on Friday, May 3 from 5pm – 10 pm.  20% of all sales will be returned to the Mike’s Hike Science Scholarship Fund and the Smithtown Children’s Foundation.

May 5, Cinco de Mayo commemorates the Mexican army’s 1862 victory over France at the Battle of Puebla during the Franco-Mexican War. In the United States, Cinco de Mayo has evolved into a celebration of Mexican culture and heritage. In Smithtown, it means - FIESTA! 

Maria’s Mexican & Latin Cuisine in Nesconset is offering an authentic Mexican menu, margaritas for 5 pesos and Coronas for 4 pesos. Live music, games, prizes and give-a-ways are planned for the event. In Saint James, Del Fuego has mucho drink specials and live music planned to begin at 4pm on their outdoor patio. Here’s hoping for good weather!

The Kings Park Farmer’s Market will also be counting on good weather May 5 for its opening day.  The market will be open from 9am to 2pm and is located across from the King’s Park firehouse. Get there early for the best selection of Long Island grown vegetables, plants and flowers. You will be delighted to find other artisan goodies there as well. This past weekend, at the Commack Winter Farmer’s Market I picked up Kalypso Greek Yogurt and Laurie’s Granola.  Both are exceptional products and will be available at Kings Park on May 5th. Jen’s Hens Eggs from Turtle Back Farms in Smithtown and Thera Farms with their hydroponically grown greens will be there too. 

ATTENTION MOMS: Head over to the Smithhaven Mall on Thursday, May 9^th for National Mom’s Night Out from 5 – 8pm.  “The Ultimate Celebration of Motherhood” takes place at the center court with free food and drink samples, gift bags, give-a-ways, mini makeovers & fashion show.

Mother’s Day is Sunday, May 12.  If you plan on taking mom out to eat, make those reservations pronto.  If you plan on a DYI celebration, reference the What’s Cookin’? – Smithtown facebook page www.facebook.com/chef.noko.wcs  for recipe ideas, local take out options and great gift ideas. 

Smithtown Man Pleads Guilty To Felony Charges - Schemed To Steal Retirement Savings

Long Island Man Pleads Guilty After Multi-State Scam To Steal Victims’ Retirement Savings

April 26, 2013

Defendant Falsely Claimed To Be An Experienced Investment Advisor And Used The Retirement Funds To Gamble On Sports

CENTRAL ISLIP, NY – Smithtown, New York, resident Alexander Swanson, 48, waived indictment and pleaded guilty this morning to felony charges that he engaged in a wire fraud scheme to steal retirement savings from individuals in New York, New Jersey, and elsewhere. Through his investment fraud scheme, the defendant stole approximately $3.1 million from his victims. When sentenced, the defendant faces up to 20 years’ imprisonment on each of the three counts to which he pled guilty. Pursuant to his guilty plea, the defendant must also forfeit the proceeds of his fraud.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.

According to the criminal charges filed today in the Eastern District of New York, Swanson misrepresented his job, background, and investment experience to his victims, and then provided the victims with false reports touting his investments’ performance. These misrepresentations fraudulently induced the victims to invest with Swanson, who stole and squandered their retirement savings for his own benefit, including gambling his victims’ savings on sporting events.

“Today, Swanson admitted that he constructed a false persona, lying about his job, background, and investment expertise, all for the purpose of bilking unsuspecting individuals out of their hard earned retirement savings. Promising them secure investments, he instead provided fraudulent reports that lured them deeper into his web of lies and deceit. Just as Swanson played fast and loose with the truth, he also played with his victims’ money, gambling much of it away on sporting events. Due to the combined efforts of law enforcement, the real Swanson will now receive the only payout his actions deserve: fraud charges, a guilty plea, and the prospect of a significant jail sentence,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI for their hard work on this important investigation.”

FBI Assistant Director-in-Charge Venizelos stated, “Swanson preyed upon a particularly vulnerable class of victims. Investment fraud always victimizes the trusting investor, but Swanson targeted retirees who parted with portions of their savings. The FBI is determined to protect all investors from unscrupulous schemes.”

The defendant’s guilty plea took place this morning before United States Magistrate Judge Gary Brown, at the federal courthouse in Central Islip. United States District Judge Denis R. Hurley has not yet scheduled the sentencing hearing in this case.

The government’s case is being prosecuted by Assistant United States Attorney Christopher A. Ott.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The Defendant:

ALEXANDER SWANSON
Age: 48
Smithtown, New York