Ramapo Corruption Probe: Feds Focus On Ballpark Refinancing, Sources Say

Ramapo corruption probe: Feds focus on ballpark refinancing, sources say
7/11/13 9:18 AM
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Originally published: May 16, 2013 11:34 AM Updated: May 20, 2013 6:23 PM By SARAH ARMAGHAN, TIMOTHY O'CONNOR AND MEGHAN MURPHY sarah.armaghan@cablevision.com
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Photo credit: Photo by Faye Murman | The field at Provident Bank Park is prepared for the Rockland Boulders game against the Air Hogs. (June 19, 2012)
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Federal authorities are investigating whether Ramapo's Local Development Corp., headed by Town Supervisor Christopher St. Lawrence, falsely claimed assets it did not have to back the refinancing of bonds, including the $25 million bond for the controversial Provident Bank Park, sources told Newsday.
http://www.newsday.com/news/ramapo-corruption-probe-feds-focus-on-ballpark-refinancing-sources-say-1.5275099
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7/11/13 9:18 AM
FBI agents and prosecutors from the U.S. attorney's office also are investigating the LDC's financing of the building of Ramapo Commons, a 24-unit affordable housing condominium project in an unincorporated part of the town, sources familiar with the FBI seizes documents, computers at Ramapo Town Hall investigation said. About 40 FBI agents descended upon Ramapo Town Hall with search warrants shortly before 4 p.m. Wednesday, seizing documents and computer equipment from several offices. The agents and Assistant U.S. Attorney Daniel Filor left just before 11 p.m. with two dollies piled with seized items. Jasmin, Desmaret refusing to step down MORE: Complete coverage VIDEO: Jasmin, Desmaret refusing to step down | Spring Valley Mayor Noramie Jasmin responds to corruption charges | FBI arrests Spring Valley mayor in corruption probe PHOTOS: Christopher St. Lawrence through the years | New York politicians arrested in mayor's race corruption probe | Disgraced NY Spring Valley Mayor Noramie Jasmin responds to corruption charges politicians Ramapo Town Attorney Michael Klein declined Thursday to comment on the probe. "I don't have enough specific information," he said when asked about the LDC as a possible target of the probe. St. Lawrence seemed to grow agitated Thursday morning as he was swarmed by reporters at Town Hall. "I think I'll make this clear: They asked me no questions," he said of FBI agents. "All they said is they wanted to look at some records, and FBI raids Ramapo Town Hall we provided them access to that. They asked no one in the town any questions about anything. They didn't tell us anything other than that they wanted to look at some records, and that was it." QUESTIONS SWIRL AROUND STADIUM FINANCING The town-backed LDC refinanced the $25 million bond in February Spring Valley Mayor Noramie Jasmin, 5 other politicians arraigned on the two-year-old stadium that is home to the Boulders independent Can-Am League baseball team. The refinanced bond terms extended the initial five-year bond to three decades, but lowered the town's annual payouts on the bond from $5 million to $1.5 million. The LDC was created by the town specifically to facilitate the building of the $39 million ballpark and therefore owns the stadium. New York politicians arrested in mayor's race corruption probe The refinanced bonds, however, were criticized by the office of state Comptroller Thomas DiNapoli, whose 2012 audit cast doubt on the town's ability to pay off the initial bonds based on questionable revenue estimates. The bonds were refinanced before 2012 revenue figures were tallied. The town's 2012 income from the park still has not been released. After a regularly scheduled council meeting Thursday at Town Hall that focused on police matters with no mention of the federal raid, St. Lawrence was asked when the 2012 numbers would be released. "I have no idea," he said. Taxpayers are responsible for $35.4 million in expenditures on stadium property, according to
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DiNapoli, in addition to potential liability for $25 million in bonds issued by the LDC and guaranteed by the town. The $35.4 million includes the $8.4 million that the town spent to acquire the stadium property, in addition to $27 million of town funds spent to improve the site. BOND RATING AGENCY 'MONITORING' THE SITUATION On Wednesday, bond rating agency Moody's issued an A1 rating on the town's $39.2 million in public improvement general obligation bonds expected to be sold this month, but assigned a negative outlook on the municipality's $103 million in overall outstanding general obligation debt. "The negative outlook reflects our expectations that operations will continue to be challenged due to volatile, economically sensitive revenues and limited financial flexibility," the report said. A Moody's spokesman said the rating report was unrelated to the FBI raid. "It's independent of whatever's going on in the town," he said. At the same time he added that the rating agency is "monitoring" the situation. TENSE TIMES IN TOWN HALL St. Lawrence said Moody's negative rating was not solely associated with the ballpark's financing, but included all town projects such as $8 million for highways and road construction. "I don't see any impact on the finances of the town ... because we've been informed of no investigation or anything by the FBI," St. Lawrence asserted, referring to the costs of hiring attorneys to deal with the investigation. A Town Hall employee described the mood in the building Thursday as tense. "I think people are concerned. The whole thing is just stressing the workplace," said the employee, who asked not to be identified. "Nobody has any idea what's going on." Deputy Supervisor Pat Withers said: "I feel comfortable with my actions and my votes. I've made myself available to the FBI and federal investigators. I assured them we will not hinder in any efforts in any way." A spokesman for U.S. Attorney Preet Bharara declined to comment Thursday. One source told Newsday that the sweep -- led by agents from the FBI's Public Integrity and White Collar Crime Unit in White Plains -- showed up before subpoenas were issued to prevent the possibility that documents would be destroyed and computer drives erased. Rockland County Legislator Joe Meyers, (D-Suffern), said a federal investigation seemed inevitable. "We know there have been terrible overexpenditures of cost in the stadium," he said. "There were a lot of contractors involved in the construction of the stadium -- a lot of vendors. Chris St. Lawrence has cultivated vendors since the day he came into office in a way not even the most sanguine politicians haven't. "Where it leads, whether it's the stadium, or whether it's other things that the FBI was given information about, is anybody's guess at this point, but I think the stadium is certainly a possibility," he said. ACTIVISTS: RAID 'VALIDATES WHAT WE'VE BEEN DOING' Michael Castelluccio is one of many citizen activists who say they have been feeding information to federal officials for nearly five years about their suspicions regarding possible bond fraud, improper use of Social Security numbers, forged signatures and interference with elections, among other things.
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In the past, town officials have denied the allegations of the critics, who speak out at public meetings, run campaigns against them and videotape officials. Bob Rhodes, president of Preserve Ramapo, a loosely organized group with an email list of about 10,000, said he first spoke with an FBI agent about five years ago when he came to his house and made copies of his files. Another activist, who did not want to be named, also began speaking with federal officials around the same time, and handed over "two or three pounds" of paper. "I just remember printing my entire hard drive." Castelluccio, a member of Preserve Ramapo, said: "We see our role as being the collector of information and attempting to get agencies to follow up and do their jobs on some of this corruption. Wednesday's raid, he added, "validates what we've being doing and makes me feel really good." With Meghan Murphy User rating:
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mujnmom 1 month ago DIRTY BUSINESS AS USUAL. Living in Monsey, it is more than impossible to be surprised by this. I actually hope this is just the tip of the iceberg and they continue to dismantle the entire fiasco so they can clean it up and start over from the ground up, fairly. There are far too many suffering and far too many more living it too easy on everyone else's dollars across this county. If you think it wont take over your neighborhood, and SV is just not close enough, you are living a pipe dream and you will soon watch as your life will be taken over by a bloc vote and dirty politicians willing to sell you out to keep that vote. This county is far too small to have this sort of corruption take place in a vacuum. These little guys (and gal) are just the small idiot fools who were greedy enough and nave enough to think the other dirty big guys wouldn't hang them out alone. Hah! and this guy is no different. He makes me sick just to look at....
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ldonadio 1 month ago He is going to look excellent in an orange jumpsuit.

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Peggy1 1 month ago Never fails to amaze me that after an event as big as 40 FBI agents swooping in to take box loads of documents out of Town Hall, this guy has the nerve to walk around with bravado....just like his friend Jasmine. Can't wait to hear his littney of excuses tomorrow morning at 9:00am on WRCR. We can all look forward to a full hour on Saturday morning of his bloviating on issues that nobody cares about. Please, Mr. Supervisor, resign while you still have a shred of dignity left. Although, I am not sure that the Deputy Supervisor would do any better. Your entire Board has voted in lock step with you for all these years...turning their backs on their constituents all these years. Especially disappointing has been fellow Irishman, Pat Whithers and African American, Brendel Logan. Clearly, they have lost their way and forgotten where they came from.
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Ramapo Corruption Probe: Feds Focus On Ballpark Refinancing, Sources Say

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