The protection of individuals and consumers, especially senior citizens, from fraud and financial crime remained a top priority of the Special Investigations Bureau in 1998. We aggressively prosecuted every form of white collar crime and obtained a record number of convictions through the year. We conducted an undercover house sting to focus on unscrupulous appliance repair and chimney repair workers and obtained graphic videotaped evidence of the abuses which can befall unwary consumers. We initiated prosecutions of thirty-four unlicensed home improvement contractors and we conducted a sweep of twenty-three contractors who were the subjects of bench warrants for failing to appear in court on earlier charges of Operating a Home Improvement Business Without a License.

We conducted two insurance fraud sweeps, arresting nine defendants at mid-year and another thirteen defendants in the fall. We also arrested fourteen defendants for having engaged in unemployment insurance fraud. During the year, we continued the prosecution of Operation Backbone, the innovative undercover project which was announced in 1997, and by year's end we had obtained convictions of fifteen defendants in that nationally recognized investigation.

The Special Investigations Bureau maintained the District Attorney's commitment to vigorously prosecute bias crime during the year. Our Bias Crimes Unit also conducted two undercover stings in response to community complaints about the sale of box cutters by retail stores in Nassau County and we exposed phony "lawyers" who victimized the Central American immigrant community. We also worked closely with the U.S. Department of Housing and Urban Development's Inspector General on housing fraud complaints throughout the year.

In the public integrity field, we followed through on the 1997 conviction of P.O. Robert Patino for disability fraud as the Appeals Bureau defended that conviction in the Appellate Division; early in 1999, the Appellate Division upheld Patino's conviction and reinstated two counts which the trial court had dismissed. We prosecuted a total of fifteen lawyers during 1998 and arrested a sixteenth early in 1999 based on investigative work during the year. We notified the Sheriff of the findings of an investigation into conditions at the nursery at the Nassau County Correctional Center and the New York State Commission of Correction confirmed our findings and endorsed our recommendations later in the year.

During 1998, the Special Investigations Bureau initiated or conducted over one hundred eighty-five prosecutions. Virtually every prosecution resulted in a plea of guilty and we obtained cash restitution payments of over $1,065,959 , while restitution was mandated through court orders in a total of over $14,475,546 . The courts also levied fines of $28,663 and fees of $2,214 in connection with those prosecutions.

CRIMES AGAINST INDIVIDUALS

Gerald Hersh was sentenced early in 1998 arising out of his conviction for having stolen funds from the Temple Beth Or of the Deaf. The defendant was sentenced to serve five years probation and a judgment in the amount of $44,000 was entered against him.

Steve Sutton and Morris Sutton were arrested in 1997 for a scheme in which they held themselves out to be lease brokers. In this scam, the Suttons solicited out-of-state victims to lease various types of equipment. The Suttons obtained security deposits from their victims but never arranged for financing and refused to return the security deposit money. Early in 1999, Steve Sutton and Morris Sutton each pled guilty to two counts of Grand Larceny in the Third Degree. $200,000 is being held in their attorney's escrow account. An additional $60,000 will be paid through civil judgment and Probation. Sentencing is scheduled for later in 1999.

Eros Adragna pretended to be a veterinarian, but was in fact not licensed to practice veterinary medicine. He pled guilty to Unauthorized Use of a Professional Title and Criminal Possession of a Forged Instrument in the Third Degree. Early in 1999, he was sentenced to serve forty-five days in the Nassau County Correctional Center and three years probation. The defendant was also required to pay restitution of $591.00.

James Chiarkis held himself out as an attorney, and attempted to convert settlement checks intended for his client by submitting a forged power of attorney. Late in 1998, the defendant pled guilty to Practicing Law Without Admittance, and was sentenced to a Conditional Discharge and a $250 fine.

Emmanuel Paul held himself out as a broker for Nigerian oil products and accepted money for such products which, in fact, were never delivered. Paul pled guilty early in 1999 to Attempted Scheme to Defraud in the First Degree and Forgery in the Third Degree. He was sentenced to time served at the Nassau County Correctional Center and a Conditional Discharge. A civil judgment was ordered in the amount of $20,067 and the defendant was fined $850 under each charge.

Richard Raymond falsely held himself out to be a Certified Public Accountant in an audit that was submitted to the U.S. Department of Agriculture. As a result of an undercover investigation which we conducted in cooperation with the Office of the Inspector General of the Department of Agriculture, Raymond was arrested and he subsequently pled guilty to Illegal Practice of Accounting. Raymond was also prosecuted for his operation of a home improvement business without a home improvement license. The defendant was sentenced to pay fines in the total amount of $750, to serve twenty hours of community service and to a Conditional Discharge.

Donna Maxwell stole health insurance checks issued to a former neighbor and deposited them into her own bank account by altering her marriage certificate and changing her last name to that of the victim. She pled guilty to Grand Larceny in the Fourth Degree and was sentenced to serve sixty days in the Nassau County Correctional Center and five years probation and to pay restitution in the amount of $10,665.

Bondalyn Williams, a real estate broker, stole $7,500 and $10,000 from two clients by making fraudulent representations about real estate transactions. She pled guilty early in 1999 to Grand Larceny in the Fourth Degree.  Sentence is pending.

Jason Wang, a former stock broker, was charged with diverting funds from his clients' accounts and using them for his own purposes. Wang pled guilty to Grand Larceny in the Fourth Degree. He was sentenced to serve four months in the Nassau County Correctional Center and five years probation. He paid $40,000 in restitution and was required to pay an additional $16,731 in restitution as part of his sentence.

Teresa Vasilakos, a/k/a Teresa Minuto, was arrested late in 1997 arising out of her operation of a travel agency known as Garden City Leisure Travel. Vasilakos charged her customers' credit card accounts for travel packages for which the customers had already paid and she used customers' credit cards to purchase travel packages for other customers without permission of the credit card holder. We also discovered that Vasilakos had secured $6,100 in cash disbursements on her own credit card by kiting checks to the credit card company from her agency's severely overdrawn business account. Vasilakos pled guilty to Grand Larceny in the Fourth Degree and was sentenced to five years probation and was ordered to make restitution in the amount of $80,000 to a total of nine victims.

Donna Coughlin operated a travel agency known as Tour Advisors. She accepted over $34,000 from her clients for travel arrangements, but kept the money for herself, rather than forwarding it to the travel companies. The defendant pled guilty to and was sentenced to probation. She paid $14,894 in restitution to the complainants and was ordered to pay the remaining $19,664 through the Probation Department.

Konstantina Aivazoglou was the manager of Crest Travel. She was arrested and charged with Grand Larceny in the Third Degree for taking customers' ticket payments and failing to turn over the proceeds to the Airlines Reporting Corporation, the airline industry clearinghouse for the distribution of tickets and for the collection of money from travel agents. Disposition of this case is expected later in 1999.

Dennis Kuchmak was charged in connection with his unlawful entry into his tenant's apartment and conduct therein. He pled guilty to Attempted Burglary in the Second Degree and was sentenced to six months in jail, the balance of five years probation and ordered to pay approximately $300 restitution.

During the year, we received a complaint from the children of an individual who had died in December of 1997, indicating that the complainants' stepmother was transferring assets from the estate of the deceased into her personal accounts. We determined not to initiate a criminal prosecution. The subject of the allegation was ninety years old, her health was deteriorating and she returned $70,000 to the estate to the satisfaction of the complainants.

Robert Leben convinced a senior citizen to invest money with him in return for a guaranteed monthly interest payment. Leben invested some of the victim's money, but siphoned off at least $15,000 for his personal gain. Early in 1998, the defendant pled guilty to Grand Larceny in the Fourth Degree. Leben was sentenced to serve five years probation and he repaid the victim the entire $66,000 which she had invested with him.

Joanne Weil had been indicted in 1994 for having embezzled money she was holding in trust for her cousin. She had been a fugitive since that time, but was located in Oregon and arrested on the warrant. She pled guilty to Grand Larceny in the Fourth Degree and was sentenced to five years probation. She paid $5,000 in restitution and a restitution judgment order for an additional $49,000 was issued.

Investigations initiated during the year also led to arrests early in 1999:

Concetta Gallo, assisted by Antoinette DiLeo, stole over $200,000 from a mortgage lender by submitting a fraudulent power of attorney and obtaining two mortgages. Gallo was charged with Grand Larceny in the Second Degree and DiLeo was charged with Criminal Facilitation in the Fourth Degree, early in 1999. Both cases are pending.

Patricia Azzaretto was entrusted with the financial assets of a senior citizen couple, and used her position to steal $28,000 from the couple. As a result of an investigation conducted in 1998, she was charged early this year with Grand Larceny in the Third Degree and the prosecution is pending.

Karen Bent, while working as a companion to an 84 year old senior citizen, stole $13,000 and filed false applications seeking Day Care and Medicare benefits. As a result of an investigation conducted in 1998, she was charged early in 1999 with Grand Larceny in the Third Degree. A disposition is anticipated during the year.

CRIMES AGAINST BUSINESSES

Sharon Jenkins was employed as the Accounts Payable clerk for Kozy Shack, Inc. An investigation conducted with the New York State Police determined that Jenkins used her position to steal $381,626.66 from her employer. Arrested late in 1997, the defendant pled guilty during 1998 to Attempted Grand Larceny in the Second Degree. She was sentenced to 2 a to 7 years imprisonment and ordered to pay approximately $360,000 in restitution in the form of a civil judgment. She had already paid approximately $22,000 prior to sentence.

Jeffrey Israel was the business manager for a medical doctors' professional corporation. We determined that Israel had stolen in excess of $400,000 from the corporation between 1993 and 1997. Arrested late in 1997, the defendant pled guilty in 1998 to Grand Larceny in the Second Degree and was sentenced to one to three years, with restitution by judgment in the amount of $150,000.

Rafael Pinto was arrested late in 1997 for having stolen $77,000 from his employer, U.S. Express, a domestic and international freight forwarding business. Pinto, an accounts receivable clerk, fraudulently established a fictitious corporate account with a bank account located in Nassau County and deposited his employer's accounts receivable checks into this duplicate account. Pinto pled guilty to Grand Larceny in the Third Degree early in 1998. He paid $7,500 at the time of sentence and was required to pay $70,122.87 through the Probation Department. He was also required to perform 300 hours of community service and to serve five years probation.

Millie Segarra was a theft examiner for GEICO. She added an additional claimant for automobile theft claims and kept the second check for herself, stealing over $300,000 in the process. She pled guilty to Grand Larceny in the Third Degree and was sentenced early in 1998 to serve six months in the Nassau County Correctional Center and five years probation. By the time of sentence, the defendant had made restitution to GEICO in the amount of $143,788.86 and signed a confession of judgment with respect to an additional $174,149.08.

Munson Hunter and Arnold Beaujuin cashed forged checks using false identification at various branches of the Bank of New York. As a result of an investigation conducted with the Crimes Against Property Squad of the Nassau County Police Department and U.S. Secret Service, Hunter was indicted and later pled guilty to Criminal Possession of a Forged Instrument in the Second Degree. He was sentenced to serve one year to run concurrent with a Federal conviction and he agreed to make restitution in the amount of $1,114.36 to the Bank of New York through Probation. Hunter was required to execute a civil judgment on behalf of the Bank of New York. Beaujuin pled guilty to Petit Larceny and was sentenced to time served due to his cooperation and truthful testimony against Hunter.

As a result of an investigation conducted with the Nassau County Police Department, Donald Miller was indicted for a scheme in which he issued bad checks drawn on a Nassau County bank. Miller pled guilty to Scheme to Defraud in the First Degree. He was sentenced to six months in the Nassau County Correctional Center, restitution in the amount of $7,760, and a civil judgment was entered in the amount of $6,753 with a surcharge of $337.65.

Nicholas Venice was arrested for attempting to pass forged checks at Citibank. We prosecuted the case and the defendant pled guilty to Attempted Grand Larceny in the Third Degree. He was fined $1,000 and sentenced to serve eight months at the Nassau County Correctional Center.

Yuderqui Bautista was charged with Grand Larceny in the Third Degree for having stolen over $30,000 from her employer, the Chase Manhattan Bank. The defendant had credited her own account on a daily basis with money to which she was not entitled and then withdrew that money from a cash machine. Bautista pled guilty to the charge and was sentenced to serve 35 days in the Nassau County Correctional Center followed by five years probation. She paid restitution of $20,000 prior to sentence and a restitution judgment order was issued for an additional $16,078.

Jennifer Talcott, a teller employed by the Chase Manhattan Bank, embezzled $5,520 from the bank. She pled guilty early in 1999 to Attempted Grand Larceny in the Third Degree and sentence is pending.

Michelle Valdes, a teller employed by Citibank, embezzled $10,340 from the bank. She pled guilty to Attempted Grand Larceny in the Fourth Degree and is awaiting sentence.

Ellen Clarke, a bookkeeper, was arrested for stealing $58,000 from her employer. She pled guilty to Grand Larceny in the Third Degree and paid $5,000 in restitution with the balance of restitution to be paid through the Probation Department. She was also required to execute a civil judgment.

James Dunden, a salesman for Horizon Garage Doors, stole over $6,000 from his employer by converting customers' payments to the company to his own use. He pled guilty early in 1999 and sentence is pending.

Steve Cohen, a liquor store owner, passed counterfeit checks through his bank account and used the proceeds to purchase liquor. He pled guilty to Grand Larceny Third Degree and was sentenced to five years probation. He was ordered to make restitution in the amount of $93,506 as part of the disposition and he paid $41,000 of that amount to the Chase Manhattan Bank by the time of sentence.

Jill Schwartz was charged with the theft of approximately $4,500 from her employer. Prior to the filing of criminal charges, she paid $1,000 restitution. She pled guilty to Petit Larceny and was sentenced to three years probation and ordered to pay the balance of the restitution, which she did at the time of sentence.

Kathleen Walsh was charged with one count each of Grand Larceny in the Second Degree and Grand Larceny in the Third Degree in connection with her embezzlement of approximately $97,000 from two employers sharing offices and certain employees. Her case is now pending.

Miranda A. Walker was charged with Grand Larceny in the Third Degree in connection with her participation in the theft of approximately $6,700 worth of merchandise from the Home Depot store in which she was newly employed as a cashier, using a credit card number belonging to Yankee Hall of Famer Reggie Jackson. The case is pending.

Vincent T. Lattuca, the owner of a business called Designs in Reflection, manufactured, distributed and sold various counterfeit items depicting Warner Brothers, D.C. Comics and Disney characters, as well as designs and logos from Major League sports. Following the execution of a search warrant, the defendant was arrested and pled guilty late in 1997 to one count of Trademark Counterfeiting in the Third Degree. He was sentenced early in 1998 to make restitution in the amount of $9,365, to forfeit assets totaling $15,000, to pay a fine of $300 and to receive a Conditional Discharge.

George Wurtzel and Raymond Reed were arrested and charged with Trademark Counterfeiting as a result of an investigation conducted with the Nassau County Police Department's District Attorney Squad. As a result of a search warrant which we obtained, over $100,000 worth of videotapes and compact disks were confiscated. The Recording Industry of America called this operation one of the largest distributorships of bootleg tapes and compact disks in the northeast. Wurtzel pled guilty to Attempted Trademark Counterfeiting in the Second Degree and forfeited 14 VCR's, a television monitor, a computer and assorted videotapes and recording equipment. Reed pled guilty to Attempted Trademark Counterfeiting in the Second Degree and forfeited $718, 137 compact disks, 172 videotapes and two computers. Two sales personnel for Wurtzel and Reed entered pleas to violations and paid fines in connection with this case.

In an investigation conducted with the Third Squad detectives of the Nassau County Police Department and the Motion Picture Association of America, six manufacturers and twenty-two distributors of pirated videotapes were arrested for producing and selling counterfeit copies of feature films. Guilty pleas were obtained from all but one defendant, who is now a fugitive and the subject of a grand jury indictment and arrest warrant. The total amount of restitution paid as a result of this case was $12,224.75.

Rajesh Kumar and Tushar Kshatriya were arrested for selling pirated videos of Indian films. Both defendants pled guilty to violations and were fined $100 each.

Alberto Robayo and Carlos Benavides were arrested a second time for selling pirated videotapes late in 1998 and their case is pending.

Lloyd Peckler was arrested early in 1998 after he sold a bootleg rock concert videotape to an undercover investigator. Some 350 bootleg videotapes were seized at the time of the arrest. Peckler subsequently pled guilty to a violation and was sentenced to pay a fine of $155, a $40 surcharge, a $5 crime victim's fee and a Conditional Discharge.

AUTOMOBILE FRAUD

George Fallica operated a subleasing business in the name of Automotive Management Group in Westbury. Fallica misrepresented to his customers the credentials of sub-lessees, forged registrations and directed the submission of fraudulent insurance applications to further his scheme. Fallica pled guilty to Forgery in the Second Degree, Failure to File an Income Tax Return under the New York State Tax Law and An Offense Relating to Certificates in violation of the Vehicle and Traffic Law. Sentenced early in 1998 to time served (25 days in the Nassau County Correctional Center) and five years probation, Fallica was ordered to pay $32,221.11, $10,000 of which was paid at sentence, with the remainder to be paid over the period of probation.

James Nelson ran a used car business and sold numerous automobiles to consumers with the odometers rolled back. Late in 1998, Nelson pled guilty to Scheme to Defraud in the First Degree; he was sentenced early in 1999 to five years probation and to perform 100 hours of community service. He was also required to pay fines totaling $1,500 and to make restitution in the amount of $15,250. The defendant also agreed to forfeit six automobiles that he had purchased but had not sold.

Brian Zulli operated an automobile repair shop. He was arrested in 1997 for having charged customers for repairs that he did not in fact make, as well as for having deliberately auctioned off a patron's automobile despite a court order prohibiting such auction. Zulli pled guilty to Attempted Criminal Contempt and was ordered by the Court to make full restitution of $5,900 to the victims.

HOME IMPROVEMENT FRAUD

During 1998, we filed District Court informations which charged various contractors with Operating a Home Improvement Business Without a License on behalf of 63 complainants. In 38 of these cases, the defendants pled guilty and were sentenced. In those cases, the Court ordered fines amounting to $3,255 and restitution to the homeowner victims in the amount of $37,504.

Other prosecutions conducted on behalf of homeowners victimized by unscrupulous contractors included the following:

--Brendan Irwin operated a home improvement business wherein he collected payment from his customers, failed to pay his sub-contractors and then caused the sub-contractors' employees to be unknowingly paid by his employer, Catholic Charities of Rockville Centre, by falsely claiming that the properties were owned by Catholic Charities. Following a grand jury presentation, the defendant was indicted for multiple counts of Grand Larceny, Criminal Possession of a Forged Instrument and Falsifying Business Records. A warrant has been issued for Irwin's arrest.

--Jamie Walter was sentenced early in 1998 to serve six months in the Nassau County Correctional Center with credit for 249 days already served, for having defrauded victims out of $24,543 by misrepresenting that the victims needed chimney repair work which was, in fact, unnecessary and then failing to do any work after he received the money. Walter had been arrested by the Nassau County Police Department and we conducted the prosecution as a result of which he pled guilty to three counts of Grand Larceny in the Third Degree, one count of Grand Larceny in the Fourth Degree and one count of Operating a Home Improvement Business Without a License. The defendant was also ordered to pay restitution totaling $24,543 to the victims through the Probation Department and to pay a $150 surcharge and a $5 crime victim's fee. The Court directed that if Walter failed to make these scheduled restitution payments, he would likely face an upstate prison sentence on a violation of probation.

--Nicholas Spano operated a carpet installation business. He was arrested for stealing some $47,000 in cash from his customers by accepting deposit money but failing to provide any carpeting. Spano pled guilty to Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree. He made reimbursement of $15,000 prior to sentence and sentence is now pending.

During 1998, we also conducted an undercover house sting designed to focus on appliance repairmen, chimney companies, hazardous waste disposal companies, home health care aides and home improvement contractors. This project, under the direction of Deputy Chief Robert Emmons, was conducted from May until October and proved to be highly successful in exposing fraudulent practices to which unsuspecting homeowners can be subjected. Two appliance repairmen were prosecuted for charging for repairs that were not done. Ralph Garcia pled guilty and was sentenced to a Conditional Discharge, a $150 fine and $65 restitution. Jim Eisinger pled guilty and was sentenced to a $150 fine and $65 restitution.

Because chimney cleaning companies have historically been a source of citizen complaints, particularly on the part of senior citizens in Nassau County, we invited a number of chimney cleaning companies to the undercover house. Several of these companies attempted to sell us products which we did not need but two of the companies' conduct rose to the level of what we believed were unconscionable trade practices.

--Smoky Chimney Cleaning, Inc. claimed that our gas burner showed serious deterioration and that carbon monoxide fumes were leaking into the house. The repairman said that the fumes were so bad that LILCO would shut the gas off and he attempted to press for a repair that day. In fact, the chimney had been inspected by a private expert as well as the Long Island Power Authority and the repairman's representations were false.

--Tri-State claimed to have performed a thorough cleaning of our two flues and chimney. However, our videotape showed that Tri-State did no work in the living room or on the roof. The videotape further showed that the Tri-State employee inside the house opened and closed the damper, but never used any of his tools or did any cleaning work on the fireplace.

Both of these cases were referred to the Office of Consumer Affairs for administrative action.

Because of complaints against home health care aides who allegedly have stolen money from elderly patients, we focused on agencies that had previously hired aides with criminal records. One of the aides who provided assistance to our undercover was the subject of criminal charges for overbilling: Maxine Roberts stole several hundred dollars from the State of New York as a result of this fraud and was charged with Petit Larceny. The investigation also disclosed that Roberts was the subject of an outstanding warrant for Criminal Possession of Marijuana. Roberts pled guilty to a violation early in 1999. She was sentenced to a conditional discharge, and required to pay $244 restitution, a $105 fine and fees of $45.

Two home improvement contractors who have been the subject of previous complaints of operating without a license were charged with Operating a Home Improvement Business Without a License. Frank Diaz, d/b/a Levico Construction, visited the undercover residence and gave an estimate for a driveway repair; Greg Armstrong operating as Armstrong Construction, also provided an estimate for driveway repairs.

Simultaneously with this undercover house project, we conducted a sweep of unlicensed contractors who had previously been charged, but had warranted on the pending charges and failed to appear in court. We were successful in bringing 23 individuals back before the Court to answer those charges which had been filed in previous years.

ENVIRONMENTAL CRIMES

The undercover house sting also resulted in the arrest of Michael Daly for the Attempted Unlawful Dealing in Hazardous Waste. As part of the sting, we installed a storage shed in the rear yard of the house and surveillance cameras were placed so as to record any activity in the shed. Simulated hazardous waste was placed inside several 55 gallon drums, a small drum container labeled Potassium Cyanide was stored inside the shed and several yellow bags of simulated asbestos were placed outside the shed. Michael Daly was contacted based on an advertisement in a local newspaper. He picked up the 55 gallon drums, Potassium Cyanide and asbestos bags and disposed of the material by placing it inside a sanitation truck at the Town of Oyster Bay Sanitation yard. Daly, who is employed full time by the Town of Oyster Bay as a sanitation worker, was charged under the Environmental Conservation Law with Attempted Unlawful Dealing in Hazardous Waste and Attempted Endangering Public Health, Safety or the Environment. His case is now pending.

Another environmental sting was conducted jointly with the New York State Department of Environmental Conservation in 1997 using a County-owned garage facility located in Freeport. In that sting, 55 gallon drums containing a simulated hazardous waste solution were stored in that garage. We then contacted various subjects by telephone and asked if they were interested in removing the drums from the garage. None of the subjects possessed the required DEC permits to transport or dispose of the material. All of the transactions were video and audio recorded. In a parallel sting operation, we prepared several bags containing simulated asbestos and contacted subjects to see if they would remove the ostensible asbestos. The stings were successful and resulted in the following convictions in 1998:

--Jose Villalobos was paid $450 to remove six 55 gallon drums containing what he believed to be hazardous waste. Villalobos picked up the drums and deposited them in a storage shed at his home in East Meadow. Four weeks later, those six drums were discovered by the Nassau County Police Department, having been left along the road in the Flower Hill section of Roslyn. Late in 1998, Villalobos pled guilty to Attempted Endangering Public Health, Safety or the Environment and was sentenced to pay a $750 fine.

--Richard Melius was paid $1,100 to remove six 55 gallon drums marked "hazardous waste" from the undercover location. Melius, d/b/a Clean Sweep Rubbish Removal, loaded the drums onto his truck and left the area. He was subsequently arrested and the six drums were discovered at his home. Melius pled guilty to Attempted Unlawful Dealing in Hazardous Waste and a VTL violation; he was sentenced to pay $1,000 in fines and a $25 surcharge, and he received a Conditional Discharge.

--Kenneth "Gus" Chisholm was paid $200 to remove four yellow bags marked "asbestos" from the undercover garage. He then took those bags and attempted to dispose of them when our surveillance team seized the bags as evidence. Chisholm pled guilty early in 1998 to a violation and was sentenced to pay a $150 fine.

* * * *

Vincent LaRocco, an employee of the Nassau County Bridge Authority, ordered five teenaged seasonal employees to demolish toll plaza booth panels which contained asbestos and to bury the asbestos behind the facility's maintenance building. LaRocco pled guilty to a misdemeanor under the Environmental Conservation Law in 1998 and was sentenced to pay a $300 fine and to a Conditional Discharge.

Anthony Benigno, d/b/a Air Safe Environmental, Inc., utilized a rented parking space to store a van containing asbestos waste material, allowing the asbestos to become airborne and to be deposited on the ground. The defendant pled guilty to a misdemeanor under the Environmental Conservation Law; he was sentenced to pay a $1,000 fine, to perform 50 hours of community service and to a Conditional Discharge.

Michael Corr, employed by Crown Fire Supply, falsely identified himself as a Nassau County Fire Marshal while inspecting fire extinguishers at commercial storefronts. Corr pled guilty in 1998 to Attempted Criminal Possession of a Forged Instrument and to a violation of the VTL. He was sentenced to pay $700 in fines, an $85 surcharge, a $5 crime victim's fee and a Conditional Discharge. The Nassau County Department of Public Works reported concerns of possible overcharges to the County and possible illegal disposal of asbestos material by its asbestos remediation contractor, Pacific Environmental Assessment and Remediation Corp. Our investigation involved a three week video surveillance utilizing three cameras. The investigation did not establish the illegal dumping of asbestos material, but the video evidence revealed numerous occasions of workers resting, sleeping on cots, smoking and eating in the restricted work area. We referred this case to the County Attorney for civil action and notification of possible safety violations to the appropriate agencies. As a result of the investigation, the Comptroller initiated an audit of the contractor and the Nassau County Legislature agreed to expedite the approval of a replacement asbestos removal contractor.

ELECTRONIC CRIMES

Michael Laufer and Robert Katcher, both attorneys, were the subject of an investigation initiated in 1997 based on information from the New York State Police to the effect that the defendants were using a $22,000 preeminent computer program without the license or permission of the program's lawful owner. Early in 1998, both defendants pled guilty to Computer Tampering in the Fourth Degree and each was sentenced to three years probation, 80 hours of community service and to pay a $1,000 fine, an $85 surcharge and a $5 crime victim's fee. In addition, the defendants forfeited three computers and a file server.

Keith Knipschild and Gary Grossberg were arrested by the Nassau County Police Department's Sixth Precinct in 1997 for possession of 26 cable box devices which allow the user to access premium cable channels without paying for the service. Both defendants pled guilty in 1998 to Computer Tampering in the Fourth Degree; each defendant was sentenced to a Conditional Discharge and to pay a $500 fine. Knipschild also forfeited $2,500 in cash which had been seized from him.

Anthony Buonocore was arrested by the Nassau County Police Department's Sex Crimes Squad following the receipt of an allegation by the Nassau County Society for the Prevention of Cruelty to Children. Members of the society had been visiting, in an undercover capacity, an America On Line "Jon Benet Ramsey Chatroom" where pedophiles typically visit. As a result of that communication, Buonocore, a New Jersey resident, traveled to Westbury to meet what he believed to be a 13 year old female for sex. Buonocore was found to be in possession of several computer disks which contained numerous child pornography pictures. Buonocore pled guilty to Attempted Possession of an Obscene Performance by a Child. Early in 1999, he was sentenced to three years probation, treatment as directed by Probation, a $200 fine, an $85 surcharge and a $5 victim fee.

Stephen Caraccia was the subject of an investigation being conducted with the Nassau County Police Department's Crimes Against Property Squad and the New York State Attorney General into a multi-national Internet child pornography distribution ring known as "Pedo University". We obtained a search warrant which authorized the search of any computers in the defendant's residence and that warrant was executed by the Police Department and the Attorney General. The defendant was charged with multiple counts of Possessing a Sexual Performance of a Child and the Attorney General is presently conducting the prosecution.

Michael Diack was the subject of an investigation conducted with the Computer Crimes Unit of the Nassau County Police Department and the New York Electronic Crimes Task Force, a metropolitan area interagency task force headed by the U.S. Secret Service. Diack held himself out on the Internet as the owner of a company called "Macintosh Custom Systems". He agreed to sell computer related items to Internet customers who sent money to him; however, he failed to provide any material for the money or he provided items that were worth far less than what the customer had ordered. We also received a separate complaint through the District Attorney's website alleging that a "Donald Ziegler" was selling Rolex watches for $1,400. Our investigation determined that Ziegler and Diack were the same person. In all, fourteen persons across the country were victimized for a total loss of $4,486.34. He was also charged with Grand Larceny in the Third Degree for a separate fraud perpetrated on the Chase Manhattan Bank in the amount of $4,326.30. Diack pled guilty to Grand Larceny in the Fourth Degree and his sentence is pending.

During 1998, we also assisted the Appeals Bureau of the District Attorney's Office in the drafting of search warrant applications in two unrelated cases involving electronic media. In one case, the New York State Police had received information from the Santa Cruz (California) Police Department that a minor residing in Santa Cruz had been induced via the Internet to engage in sexual intercourse (which had occurred in Santa Cruz) with a 29 year old Nassau County resident. The warrant was signed and executed and the computer equipment which had been sought was seized. In the second case, the Kansas Bureau of Investigations was investigating a homicide which had occurred in Ashland, Kansas. The alleged perpetrator had sent E-mail communications from Kansas to the perpetrator's mother who resided in Nassau County, implicating the perpetrator in the murder. A search warrant was signed and executed on the same day.

During 1998, the Special Investigations Bureau continued to develop its computer and high technology investigative ability. Assistant District Attorneys and investigators participated in training sessions sponsored by the High Technology Crime Investigation Association on such topics as E-mail analysis and tracking, computer and network security, computer forensics, network intrusion and detection, cryptography and Windows NT security. We also arranged for the District Attorney to become a voting member of the National White Collar Crime Center and members of the office attended a one-week computer forensics course called "Cybercop 101". The National White Collar Crime Center also arranged to have a District Attorney's investigator attend a two week computer investigation course given by the Federal Bureau of Investigation.

TAX CRIMES

Alfonso Cohen, a former pastor at a church in Queens, leased an automobile from a dealership in Nassau County be fraudulently using the church's name and tax exempt status on fabricated documents in order to avoid payment of sales tax. The defendant was arrested and pled guilty to one count of violating the New York State Tax Law. Cohen paid $3,000 in restitution prior to sentence early in 1998 and agreed to pay the balance of $1,509.06 through the Probation Department. In addition, the defendant was fined $500 by the Court.

Steven M. Cohen, owner of Stop and Shop, Inc., d/b/a Beverage Express, located in Valley Stream, was arrested late in 1998 by agents of the New York State Department of Taxation and Finance and charged with felony and misdemeanor violations of the New York State Tax Law following an inspection of the defendant's business. This prosecution is continuing.

CRIMES AGAINST PUBLIC AGENCIES

Joseph H. Starr and Star Bond Corp. were the subjects of an investigation into allegations that Starr had submitted false surety bonds to various municipal agencies in Nassau County. The defendants entered pleas of guilty to Grand Larceny in the Third Degree early in 1998. Starr was sentenced to three and one-half to seven years in a state correctional facility. He was ordered to make restitution of $2.5 million and Star Bond Corp. was ordered to make restitution of $5 million. In a related case, Stanley Tepper, an accountant who assisted Starr, entered a plea of guilty to Issuing a False Financial Statement. He was sentenced to three years probation and to pay a fine of $350.

Robert Herman was arrested in connection with allegations that he had presented forged performance bonds to three local school districts in connection with computer cable work to be performed for those districts. He pled guilty to Petit Larceny on the condition that he make restitution of $53,000. He is awaiting sentence.

Richard Nessim and his business entities, CBC General Contracting and National Republic Corp., were charged with Grand Larceny in the Second Degree arising out of a scheme in which Nessim submitted phony surety bonds on construction projects for the Plainview Water District, the Uniondale Fire District, the South Hempstead Fire District and the Village of Mineola. Nessim has pled guilty to Grand Larceny in the Second and is awaiting sentence. Evidence which we developed during our investigation has been provided to the United States Attorney, and the District Attorneys of Suffolk and Westchester Counties. Rajesh Sheth, an accountant, entered a plea of guilty to Offering a False Instrument for Filing in the First Degree on related charges. He was sentenced to five years probation and to make restitution of $14,990. John Saracco, an accountant, pled guilty to Offering a False Instrument for Filing in the Second Degree for his role in the scheme. He was sentenced to three years probation, 100 hours of community service and to make restitution in the amount of $2,500.

Based on information which we received late in 1998 from the Englewood (New Jersey) Police Department, Norman Spencer Gary was arrested early in 1999 for falsely holding himself out as an attorney on behalf of clients in Nassau County. His case is pending.

Carol Ahearn Montross appeared in Long Beach City Court and falsely represented herself to be an attorney. She pled guilty to the Unauthorized Practice of Law and early in 1998 was sentenced to three years probation and psychiatric therapy.

As the result of an investigation conducted with the New York State Department of Labor, five defendants were arrested late in 1997 and charged with unlawfully collecting unemployment benefits from the state while they were still working. Michael Constantinou pled guilty to Petit Larceny early in 1998 and was ordered to make restitution in the amount of $3,133. Marie Simmons entered a plea of guilty to Petit Larceny early in 1998 and she was ordered to make restitution of $5,472. Michael Dmuchowski pled guilty to a violation and paid $5,633 in cash at sentencing. Beatrice Watford-Tyson pled guilty to Petit Larceny; she paid $500 in restitution and was ordered to pay the outstanding balance of $3,550 through the Probation Department.

Vivian Nixon was originally charged as a result of her having received approximately $3,500 in unemployment benefits while she was employed full time. When her arrest was announced to the media, another person named Vivian Nixon realized that the defendant had been using her Social Security number to fraudulently apply for credit cards. This discovery led to a second arrest of the defendant, who subsequently pled guilty to four counts of Forgery in the Second Degree. The defendant was sentenced to 3 2 to 7 years in a state correctional facility.

A follow-up unemployment insurance investigation conducted with the New York State Department of Labor resulted in the arrest of fourteen individuals at mid-year for unemployment insurance fraud. All fourteen defendants had been convicted by year's end. Jeffrey Bovel pled guilty to Petit Larceny and was sentenced to three years probation and to make restitution of $3,200. Antoine Williams pled guilty to Petit Larceny and was sentenced to six months incarceration and to make restitution of $7,350. Matthew Smith pled guilty to Petit Larceny and was sentenced to a Conditional Discharge and restitution of $3,106, which was paid in full at sentencing.  The defendant was also fined $200 and required to pay an $85 surcharge and a $5 crime victim's fee. Lisa Pope pled guilty to Petit Larceny and was sentenced to a Conditional Discharge, a $500 fine, an $85 surcharge, a $5 Crime Victim's fee and to make restitution in the amount of $3,600. Judith Popso pled guilty to Petit Larceny and she paid full restitution of $4,032. She was sentenced to a Conditional Discharge and a fine of $150. William Riedell pled guilty to Offering a False Instrument for Filing in the Second Degree and agreed to pay restitution in the amount of $3,900. Sentence is pending. Melissa Laub-Nevola pled guilty to Offering a False Instrument for Filing in the Second Degree. She was sentenced to a Conditional Discharge, a fine of $500 and restitution of $4,150.50. Jose Romero pled guilty to Petit Larceny and made restitution of $4,425; he was sentenced to a Conditional Discharge and a $500 fine. Joseph Vecchio pled guilty to Offering a False Instrument for Filing in the Second Degree; he was sentenced to three years probation, a $250 fine, an $85 surcharge and a $5 crime victim's fee. He also signed a restitution order agreeing to pay $5,250. Lloyd Ritzberg pled guilty to Petit Larceny, was sentenced to three years probation and signed a restitution order for $2,736. Kristle Atkinson pled guilty to Petit Larceny; she was sentenced to a Conditional Discharge and required to pay $3,874 in restitution. Jacqueline Grant pled guilty to Petit Larceny; she was sentenced to three years probation and a restitution judgment order required her to make restitution of $5,100. Donnell Nash pled guilty to Petit Larceny. He paid restitution of $4,758 and he was sentenced to a Conditional Discharge and a $100 fine. John Steffgen pled guilty to Petit Larceny. He was sentenced to serve 300 days in the Nassau County Correctional Center and a restitution judgment order for $4,947 was issued.

Joseph Labove was employed as an automobile salesman while connecting unemployment insurance benefits. Following an investigation conducted in 1998, he was charged early in 1999 with Grand Larceny in the Third Degree and the prosecution is pending.

PUBLIC INTEGRITY

Nassau County Police Officer Robert Patino was indicted in 1996 and charged with Grand Larceny in the Third Degree, Defrauding the Government and Offering a False Instrument for Filing and Attempted Grand Larceny in the Third Degree following an investigation conducted with the Nassau County Police Department's Internal Affairs Unit and the Medical Administration Office. Officer Patino was accused of falsely claiming that he was disabled and of filing a fraudulent New York State Disability Insurance application. Following a trial in County Court, the jury returned a verdict of guilty on all four counts. Early in 1997, the Hon. Jack Mackston, Judge of the County Court, set aside the jury's verdict as to Grand Larceny in the Third Degree and Defrauding the Government, but upheld the remaining counts. Patino was sentenced to make restitution of $18,372 and to pay a fine of $5,000. The Court subsequently resentenced Patino, deleting the requirement of restitution and requiring him to serve 90 days incarceration and five years probation.

The Patino file remained active through 1998 as the Appeals Bureau vigorously defended the conviction and argued that the counts which had been set aside should be reinstated. Early in 1999, the Appellate Division rendered a decision affirming the conviction and reinstating the two counts which the Court had set aside.

Three Town of North Hempstead employees, Alfred M. Fiola, Craig R. Niessing and Raymond B. D'Argento, were employed by the Town to collect coins from the Town's parking meters and deposit those funds in the Town's bank account. When bank employees became suspicious in 1997, we installed a hidden video camera in the basement of the bank where the three employees counted the daily proceeds of their collections. The videotape captured the three defendants stealing money and putting it into their pockets. Fiola pled guilty to Grand Larceny in the Third Degree. He was sentenced to serve six months incarceration and five years probation, and to make restitution of $24,546 to the Town. He paid $20,000 in restitution by the time of sentence and will pay the balance through Probation. D'Argento pled guilty to Petit Larceny. Early in 1998 he was sentenced to three years probation and required to make restitution of $9,546. He paid $5,000 of that sum prior to sentence and will pay the remainder through Probation. Niessing pled guilty early in 1998 to Petit Larceny. He was sentenced to three years probation, 250 hours of community service and to pay $9,546 in restitution, $5,000 of which was paid prior to sentence.

XXXXX XXXXX (redacted) was arrested by the Nassau County Police Department and charged with having offered a cash bribe to two police officers who had stopped him for a traffic summons. The defendant pled guilty to Obstructing Governmental Administration in the Second Degree and was sentenced to three years probation, 50 hours of community service, an $85 surcharge and a $5 crime victim's fee.

Wilhelm Daal, a New York City Police Detective, was arrested following a six month undercover investigation conducted with the New York City Police Department's Internal Affairs Bureau. Daal was videotaped purchasing three laptop computers which he believed to be stolen property. Early in 1999, Daal pled guilty to Attempted Criminal Possession of Stolen Property in the Fourth Degree and resigned from the New York City Police Department. He also repaid $1,800 in restitution prior to the time of plea.

Kenneth Boyce, a Town of Oyster Bay plumbing inspector, worked as a plumber during Town working hours, inspecting his private plumbing work and falsifying plumbing certificates. Following the receipt of this complaint from the Town of Oyster Bay, our investigators conducted surveillance of Boyce and obtained additional records from the Town, as a result of which Boyce was arrested late in 1998 and charged with Issuing a False Certificate, Offering a False Instrument for Filing and Official Misconduct. This case is pending in County Court.

Reginald Taylor, a Deputy Clerk in the Nassau County Clerk's Office, was the subject of an investigation which determined that he had received at least $21,000 by selling computer generated records of the County Clerk's Office, without the knowledge of the County Clerk. Taylor pled guilty to Attempted Grand Larceny in the Third Degree. He was sentenced to five years probation and ordered to pay $26,805 in restitution, of which $8,600 was paid at sentence.

Robert Sullivan was the Treasurer and a trustee of the Bellmore Volunteer Exempt Firemen's Benevolent Association. He used his position to steal Association funds. He pled guilty to Grand Larceny in the Third Degree and paid $100,000 in restitution prior to sentence with the remaining $69,000 to be paid through the Probation Department.

James Barton, Acting Treasurer of the Roosevelt Fire District, stole money from the general fund, capital reserve fund and petty cash fund during fiscal years 1996 and 1997. Barton pled guilty to Petit Larceny and early in 1998 he was sentenced to serve three years probation and to make restitution of $3,823.57, and to pay a $340 fine, an $85 surcharge and a $5 crime victim's fee.

Nicholas Petro, the Treasurer of the South Hempstead Fire Department, pled guilty to Grand Larceny in the Third Degree, in connection with charges that he embezzled Department funds. He paid $93,000 in restitution and was sentenced to probation for five years.

Albert L. Kalastein was charged late in 1997 with having falsely attested to the validity of signatures contained on a designating petition for two candidates who were seeking elective office. The defendant pled guilty to a violation in 1998 and was sentenced to a Conditional Discharge and fines and charges totaling $210.

Maxine Postal was a Suffolk County Legislator serving the Fourth Legislative District in Suffolk County. Following the appointment of the Nassau County District Attorney as special prosecutor, we conducted an investigation which resulted in the filing of criminal charges against Legislator Postal for Election Law violations arising out of allegations that she had falsified political campaign contribution reporting documents. She pled guilty to a violation of Article 14 of the Election Law and was sentenced to a Conditional Discharge and to pay a fine and fees totalling $340.

Richard Fleckenstein was a civilian employee of the Nassau County Police Department.  Following an Internal Affairs investigation, Fleckenstein was charged with Aggravated Harassment in connection with phone calls to a co-worker. Fleckenstein pled guilty to a violation and was sentenced to a Conditional Discharge with a requirement of psychiatric treatment and was fined $100.

Frank Montana, a Bellmore volunteer fire fighter, had falsely reported on his application to join the fire department that he had no record of criminal convictions. In fact, he had an extensive criminal record and he was charged with Offering a False Instrument for Filing as a result. He pled guilty to Offering a False Instrument for Filing in the Second Degree late in 1998 and was sentenced to a Conditional Discharge and fines and fees totaling $590.

Early in 1998, the District Attorney wrote to the Sheriff of Nassau County concerning the findings of an investigation into the birth of a baby in a jail cell at the Nassau County Correctional Center. Our notification to the Sheriff described the circumstances in which the inmate mother had repeatedly requested medical assistance as she was going into labor, without success, before the baby was born. We requested that the New York State Commission of Corrections, the regulatory agency with oversight responsibility for county jails, conduct an investigation into that birth. Later in 1998, the State Commission issued a report confirming our own findings and calling on the Correctional Center and the Medical Center to improve their procedures. Late in 1998, the District Attorney also notified the Sheriff and the Comptroller of Nassau County of the findings of another investigation into the operation of the kitchen facilities at the Nassau County Correctional Center, citing the inadequate documentation of the jail's food inventory and of the repairs for kitchen equipment. The Comptroller then initiated an audit of the Nassau County Correctional Center's kitchen facilities, and that audit is pending.

During 1998, we conducted an investigation into an allegation that members of the Long Beach Auxiliary Police were carrying firearms while performing their duties. Our legal research determined that there was no lawful basis for this practice, and the District Attorney recommended to the City of Long Beach that it discontinue allowing auxiliary police officers to carry guns. The City immediately complied.

CIVIL RIGHTS AND BIAS CRIMES

During 1998, nineteen cases were classified as bias motivated crimes. At year's end, dispositions had been obtained in four of those cases, while five prosecutions from 1997 and two prosecutions from 1996 were also concluded.Among the bias motivated crimes prosecuted in 1998 were the following:

--On July 5, 1998, Roland Melendez, who is Hispanic, fought with a victim, who is black, grabbing the victim's necklace and shouting anti-black slurs while grabbing and pulling the victim. On November 2, 1998, Melendez pled guilty to Aggravated Harassment in the Second Degree and Aggravated Unlicensed Operation of Motor Vehicle and was sentenced to a Conditional Discharge and a $150 fine, $40 surcharge and $5 crime victim's fee.

--On June 28, 1997, Teresa Cosenza wrote anti-Semitic graffiti on signs and storefronts. On April 6, 1998, Cosenza pled guilty to Making Graffiti, and was sentenced to a Conditional Discharge and therapy, an $85 surcharge and $5 crime victim's fee.

--On May 27, 1997, June 2, 1997 and June 21, 1997, Alexander Sporn, a psychiatrist, made threatening anti-Semitic telephone calls to his former supervisor's home. The victim is Jewish, and also a psychiatrist. On April 23, 1998, Sporn pled guilty to Aggravated Harassment in the Second Degree. On June 18, 1998, he was sentenced to a Conditional Discharge and a $660 fine. An Order of Protection was issued in favor of the victim.

--On February 13, 1997 and March 3, 1997, a youthful offender made threatening anti-gay telephone calls to a victim who is a bartender at a gay bar. On December 1, 1997, the Y.O. pled guilty to Aggravated Harassment in the Second Degree. On January 26, 1998, he was sentenced as a Y.O. to three years probation and fined $200.

--On February 4, 1997, Jamie Williams, who is white, made anti-black remarks to a female black victim and drove her car at the victim, nearly striking her. After a bench trial, on May 8, 1998 Williams was convicted of Reckless Endangerment in the Second Degree and Aggravated Harassment in the Second Degree. On November 10, 1998, Williams was sentenced to three years probation, a $300 fine, $85 surcharge and a $5 crime victim's fee. An Order of Protection was issued in favor of the victim.

--On June 5, 1996, Rory Walsh kicked in the door to the victims' apartment, while yelling anti-Semitic remarks and threatening the victims, and resisted arrest. On November 10, 1997, Walsh pled guilty to Aggravated Harassment in the Second Degree and Resisting Arrest. On January 8, 1998, he was sentenced to five months in jail, a $500 fine, $85 surcharge and a $5 crime victim's fee. An Order of Protection was issued in favor of the victims.

--On September 22, 1998, in a particularly egregious bias crime, six youthful offenders vandalized the home of a Jewish family in Westbury by spray painting swastikas and graffiti on the walls, damaging and destroying property and stealing property from the home. In early 1999, all of the individuals pled guilty and received Youthful Offender adjudications from the court. The defendants were each sentenced as Youthful Offenders to five years probation supervision with therapy as directed by the Probation Department, restitution of $1,000 per defendant, 200 hours of community service, completion of the B.R.I.D.G.E. program for anti-bias education, and an Order of Protection in favor of the crime victims. In this case, the crime victims requested that the court impose a non-jail sentence, and the victims' wishes were honored.

During 1998, the Special Investigations Bureau continued inter-agency cooperation with the U.S. Department of Housing and Urban Development and its Office of Inspector General, and a number of investigations with H.U.D. resulted in administrative referrals to local housing authorities in Nassau County.

Dennis Horak was charged with Rent Gouging for overcharging an 81 year old woman $3,400 to remain in her apartment. As a result of an investigation with the Department of Housing and Urban Development and the Nassau County Office of Housing and Intergovernmental Affairs, Horak was arrested and he later entered a plea of guilty in relation to the charge and made full restitution of $3,400 to the victim. He was sentenced to receive a Conditional Discharge and fined $300.

James Metz, a landlord who operates a number of apartment buildings in Hempstead, was arrested in 1998 on the complaint of the Mayor of Hempstead and charged with Obstructing Governmental Administration based on an allegation that Metz had prevented Building Department inspectors from conducting an inspection. Early in 1999, the defendant's case was adjourned in contemplation of dismissal contingent upon a stipulation that Metz execute an affidavit which would allow the Hempstead Police Department to arrest trespassers at an apartment building located at 1535 Elk Street in Hempstead. Metz also turned over a list of the tenants in that building and a master key for the common areas of the building, to be used by the Hempstead Police during routine patrol.

Early in 1998, we received complaints from members of the Hempstead community to the effect that certain retail stores were openly displaying box cutter knives, which led to the use of these knives by community youths to cause serious injury to themselves and other persons. In response to these complaints, we initiated an undercover sting operation to insure compliance with the Nassau County Local Law which prohibits the "open display" of such items. Using a concealed video and audio recording device, an investigator entered a number of stores and documented the display of box cutter knives in violation of County Law. As a result, charges were filed against eight retail stores: four Caldors, two Sears, one Home Depot and one Walmart store. All of the stores subsequently pled guilty and paid fines totaling $1,850. Because of the tremendous physical injuries which box cutters can cause, and because of the community concerns about the availability of these weapons, we conducted a follow-up sting operation with the assistance of two youths in order to determine whether retail stores were complying with the Nassau County Ordinance that prohibits the sale of box cutter knives to persons under 18 years of age. This operation was also video recorded and resulted in charges against nine retail stores: three Home Depot outlets, three Sears outlets, two Caldor outlets and one Big Kmart. All of the defendants pled guilty and paid fines totaling $2,100.

* * * * *

The Village of Hempstead is the largest incorporated village in Nassau County with a documented population of approximately 50,000 people and possible as many as an additional 20,000 undocumented persons who are immigrants from other countries, principally Central America. These Central American refugees are often the victims of crimes which they may be afraid to report for various reasons. One scam which is perpetrated on unsuspecting immigrants involves individuals who pose as attorneys and take money to file immigration papers which are never filed. Manuel Herrera was arrested in 1998 arising out of an undercover investigation conducted with the Nassau County Police Department's Third Squad Detectives. He was charged with Scheme to Defraud in the First Degree and Grand Larceny in the First Degree for falsely posing as an attorney and taking money to file immigration papers which were not filed. This case is pending and subsequent to Herrera's arrest, we have received a number of additional complaints from immigrants who were victimized by Herrera.

Martin A. Sanchez operated a purported law practice in Long Beach from which he held himself out as an immigration attorney. In fact, Sanchez was not licensed to practice law in New York State and he did little or no work in processing the applications of his "clients". Late in 1998, Sanchez pled guilty to Unlawful Practicing as an Attorney at Law Without Being Admitted or Registered, a class A misdemeanor, under the Judiciary Law. He was sentenced to three years probation and to pay $1,975 in restitution through Probation and a surcharge of $98.75. Joshua Thomas operated a storefront in Hempstead called First Choice Immigration, which sold phony "international driver's licenses" to unsuspecting immigrants. Although Thomas represented that these documents were authentic, they were worthless and only gave the immigrant victims a false sense of security. Thomas pled guilty to Attempted Scheme to Defraud in the Second Degree and is scheduled for sentence later in 1999. Two of Thomas' office workers, David Rutkovsky and Iris Velez, pled guilty to violations.

CRIMES BY LAWYERS

Perry V. Ferrara, an attorney, stole approximately 2.7 million dollars from a number of victims by writing checks and transferring funds from his escrow account for his own personal benefit. Late in 1997, Ferrara pled guilty to Grand Larceny in the Second Degree, Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree. He was sentenced in 1998 to serve two to six years in an upstate correctional facility. He paid $100,000 in cash at sentence and consented to restitution judgment orders having a maximum of 2.9 million dollars on behalf of the Lawyers' Fund for Client Protection, which will reimburse the victims of Ferrara's thefts.

Thomas Lyons, an attorney, maintained an office in Floral Park. Following the receipt of information from the District Court in 1997, we initiated an investigation which revealed that Lyons, on four occasions, had fabricated divorce decrees and forged the signatures of Supreme Court Justices. Lyons pled guilty in 1998 to Criminal Possession of a Forged Instrument in the Second Degree; he was sentenced to serve one year in the Nassau County Correctional Center and ordered to pay $750 in restitution.

Robert J. Pellicane, an attorney, solicited money from his real estate clients ostensibly to be used in an investment opportunity, promising to return the principal on request. The defendant failed to return most of the principal of the investment money and withheld additional funds in escrow monies from other clients. Pellicane was arrested late in 1997 and pled guilty to Attempted Grand Larceny in the Third Degree. He was sentenced to one year in the Nassau County Correctional Center. The court issued a restitution judgment order in the amount of $168,541 and Pellicane paid $30,000 in restitution at sentence, with the balance to be paid through the Probation Department.

Jonathan V. Pollack, an attorney, stole $12,000 that had been deposited in his escrow account for the payment of taxes and expenses in connection with the settlement of an estate. The defendant pled guilty to Petit Larceny and was sentenced in 1998 to three years probation. He was ordered to pay $12,100 in restitution to the Lawyers' Fund for Client Protection, of which he paid $4,000 in cash and agreed to pay the remainder through the Probation Department.

Seth Bykofsky, an attorney, was alleged to have stolen from a client by billing him for fictitious legal services and settlements on lawsuits that had already been settled. Bykofsky pled guilty in 1998 to Grand Larceny in the Third Degree; he was sentenced to five years probation and paid $30,985 at the time of sentence.

Michael Rose, an attorney, was the subject of an investigation into allegations that he had stolen client funds. Early in 1998, he pled guilty to Grand Larceny in the Second Degree. He was sentenced to serve sixty days in the Nassau County Correctional Center and ordered to pay $927,194.21 in restitution. He executed confessions of judgment for each of the complainants who were to be reimbursed by the Lawyers' Fund for Client Protection. Later in 1998, additional victims came forward with new allegations against Rose and we anticipate that he will be charged again in 1999 based on these new allegations.

Sydney Friedler, an attorney, stole $114,250 from five clients in 1996 and 1997. These allegations came to light after Friedler was arrested by the Federal Bureau of Investigation in connection with a scheme that Friedler had perpetrated in New Jersey. As a result of our investigation, Friedler was arrested early in 1999 and charged with Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree. He later pled guilty to one count of Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree, and sentence is pending.

Marvin R. Javitz, a disbarred attorney, stole $522,914.81 from seven individuals who had given him money to invest, promising them a high rate of return and immediate availability of their funds. Despite assurances to the contrary, the defendant, without notice to the victims, left the jurisdiction and moved to California. This case was presented to the grand jury, which returned an indictment charging him with three counts of Grand Larceny in the Second Degree, four counts of Grand Larceny in the Third Degree and one count of Scheme to Defraud in the First Degree. Javitz was arrested by California authorities and on the eve of trial early in 1999, he pled guilty to each count in the indictment. He was subsequently sentenced to serve 2 2 to 7 2 years in an upstate correctional facility. The court issued a restitution judgment in the amount of $888,594.

Sheldon Turtletaub, an attorney, was charged with Grand Larceny in the Second Degree, late in 1998, for stealing $380,000 from the estate of Jeanette Campbell. Turtletaub, who had power of attorney over Mrs. Campbell's finances prior to her death, diverted the proceeds from the sale of her residence to his personal bank account. This case is pending in County Court.

Paul J. Warkow, an attorney, represented a New York City fireman in a personal injury lawsuit which was eventually settled, but the client's attempts to collect his money from Warkow were unsuccessful. Warkow was arrested, and early in 1999 he pled guilty to Grand Larceny in the Third Degree. Sentence is pending.

Robert S. Elkin, an attorney, stole in excess of $95,000 from his escrow account. The money had been entrusted to him by a client and represented the entire estate of the client's deceased husband. Elkin was charged with Grand Larceny in the Second Degree and his case is pending in County Court.

INSURANCE FRAUD

In 1997, the District Attorney announced the results of Operation Backbone, an undercover investigation conducted for more than two and one-half years in conjunction with the National Insurance Crime Bureau, the U.S. Postal Inspectors and the Nassau County Police Department. In response to allegations of insurance fraud in the personal injury field, we sent undercover investigators into the offices of various legal and health professionals resulting in the arrest of seventeen defendants for crimes under the New York State Penal Law. By the end of 1998, fifteen of the defendants had pled guilty. The total amount of restitution paid in these cases was $40,218.83. Operation Backbone cases finalized in 1998 were the following:

Mitchell Rachlin pled guilty to Insurance Fraud in the Third Degree and Scheme to Defraud in the First Degree. He was sentenced early in 1998 to serve six months incarceration and five years probation, and to pay a $5,000 fine and $3,871 in restitution.

Chiropractor Susan R. Schulman pled guilty to Attempted Grand Larceny in the Third Degree and Insurance Fraud in the Fifth Degree. In early 1998, she was sentenced to three years probation and to perform 200 hours of community service, and she paid $5,189 in restitution.

Chiropractor Steven B. Angel pled guilty to Attempted insurance Fraud in the Fifth Degree. He was sentenced in 1998 to 12 months probation, to perform 100 hours of community service and to pay $758.12 in restitution.

Chiropractor Martin Drasin pled guilty to Insurance Fraud in the Fourth Degree and Scheme to Defraud in the First Degree. He was sentenced in 1998 to time served and five years probation; he paid $4,803.58 in restitution.

Chiropractor Michael Roth pled guilty to Scheme to Defraud in the First Degree and he was sentenced to five years probation and 300 hours of community service. He paid $7,734.27 in restitution.

Attorney Scott Garil pled guilty to Insurance Fraud in the Third Degree and Scheme to Defraud in the First Degree. He was sentenced to time served, five years probation and $155 in fees.

Chiropractor Christopher Haas pled guilty to Falsifying Business Records in the First Degree. He was sentenced to five years probation and 300 years of community service. He paid $6,090.86 in restitution.

Robert Cannon, a supplier of medical equipment, pled guilty to a violation and was sentenced to a Conditional Discharge and fees of $45.

Attorney Gerald McLoughlin pled guilty to Attempted Petit Larceny. He was sentenced to one year probation, 50 hours of community service and $90 in fees.

Chiropractor Jeffrey Finkelstein pled guilty to Insurance Fraud in the Third Degree. He was sentenced to three years probation and paid $3,039 in restitution.

Chiropractor George Mitzman pled guilty to Grand Larceny in the Third Degree. He was sentenced to three years probation and 200 hours of community service. He paid $5,553 in restitution.

Other insurance fraud cases which were completed in 1998 include the following:

Robin Pokorny pled guilty to Insurance Fraud in the Fifth Degree after an investigation disclosed that she had submitted the same claim form to Empire Blue Cross Blue Shield for reimbursement over sixty times. She was sentenced to three years probation and made restitution of $6,177.76.

Susan Tenentes, her mother, Loretta Okun, and Susan's sister-in-law, Rebecca Phillips, were charged with Insurance Fraud as a result of their having engaged in a scheme by which they submitted false claims for dental work to different candy companies. On numerous occasion, they each claimed that they had broken caps or teeth when they had bitten into a hidden foreign object in candy such as Tootsie Rolls. Tenentes pled guilty to Insurance Fraud in the Fourth Degree and Scheme to Defraud in the First Degree. She was sentenced early in 1998 to serve nine months in the Nassau County Correctional Center and a restitution judgment order for $9,400 was entered in favor of six insurance companies which she had defrauded. Loretta Okun pled guilty to Insurance Fraud in the Fifth Degree. She was sentenced early in 1998 to serve one year in the Nassau County Correctional Center and a restitution judgment order was entered in the amount of $1,410. Rebecca Phillips pled guilty to Insurance Fraud in the Fifth Degree. She was sentenced to time served, which amount to approximately four months in the Nassau County Correctional Center and she was required to pay $90 in fees.

Vincent Maggio was charged with Insurance Fraud as a result of his having submitted two claims to insurance companies in which he alleged that his Corvette had been damaged in two separate accidents. In fact, the second accident had not occurred. Maggio pled guilty to Insurance Fraud in the Fourth Degree. He was sentenced to five years probation.

Salvatore Alicea was accused of perjuring himself and attempting to fraudulently obtain Worker's Compensation benefits by testifying at a hearing that he had not worked after 1991. Surveillance videotapes showed Alicea working as a roofer on several occasions since then. The defendant pled guilty early in 1999 to Perjury in the First Degree. He was sentenced to sixty days in the Nassau County Correctional Center and five years probation.

Scott Shalit was charged with Insurance Fraud after it was discovered that he had caused additional damage to a vehicle which he had brought to his auto body shop for repair. Shalit caused the additional damage to fraudulently increase the amount of money he would receive from the insurance company. Shalit pled guilty to Insurance Fraud in the Fifth Degree and made full restitution in the amount of $2,430.43. He was sentenced to a Conditional Discharge.

Nanette Cohen fraudulently obtained $6,000 in no fault reimbursement for lost wages from what she claimed was a home tutoring client. Our investigation disclosed that the defendant had not provided home tutoring to the client. Cohen pled guilty to Insurance Fraud in the Fifth Degree and made full restitution of $6,000. She was sentenced to a Conditional Discharge.

Florence Steinbrecher stole $6,450 in Worker's Compensation benefits by concealing the fact that she was employed while receiving benefits. Steinbrecher had complained of neck pain so severe that she could not work or even stand for short periods of time. In fact, she was secretly employed under another name performing the same work she had done before she was "injured". Surveillance videotapes showed her on several high impact rides at the Great Adventure Amusement Park during the time she was supposedly immobilized. The defendant pled guilty to a misdemeanor under the Workmen"s Compensation Law. She was sentenced to pay $6,000 in restitution through the Probation Department, and to a Conditional Discharge, 40 hours of community service and a $200 fine.

At mid-year, the District Attorney announced the filing of criminal charges against nine individuals in a sweep of insurance cheaters. The arrests followed a joint investigation involving four insurance companies, the U.S. Postal Inspector's Office, the National Insurance Crime Bureau, the State Insurance Department, the State Insurance Fund and the New York State Worker's Compensation Board.

Alfred Vetere claimed to the management of the Waldbaum's supermarket in which he was employed as a night stock clerk that he had fallen on a spill, cut his arm while falling and injured his wrist. He submitted multiple medical bills for reimbursement to the Worker's Compensation Board. In fact, a videotape in the store had recorded Vetere staging the fall by creating the spill and deliberately slashing his left arm with a box cutter. Vetere was charged with Insurance Fraud in the Fourth Degree and Offering a False Instrument for Filing in the First Degree. His case is pending in County Court.

Joseph Weinstein fraudulently collected Worker's Compensation benefits and disability payments by concealing his true physical condition. He continued to maintain that he could not return to work, but he was caught on videotape climbing a ladder, painting a house, residing a house, moving furniture and walking with no indication of any pain. He pled guilty to Insurance Fraud in the Fifth Degree and paid full restitution of $10,972.40. He was sentenced to three years probation with 50 hours of community service.

Maria Bove submitted numerous claims for reimbursement for medical treatment that she never received. She pled guilty to Petit Larceny and made restitution of $11,169.80. She was sentenced to three years probation.

Thomas O'Callaghan, an insurance broker, stole some $7,000 from the Town of Oyster Bay Housing Authority and over $15,000 from the Freeport Housing Authority, by never forwarding premiums to the insurers. Instead, he put the money into his personal account and used it for other purposes. He pled guilty to Grand Larceny in the Fourth Degree and made full restitution of $22,698. He was sentenced to a Conditional Discharge and 100 hours of community service.

Maria Gonzales, an insurance broker, took over $10,000 in premiums and failed to forward that money to the insurers. She pled guilty to Scheme to Defraud in the First Degree and is awaiting sentence.

Louise Gregg collected disability benefits while working off the books as a home health aide. She pled guilty to Grand Larceny in the Third Degree. She was sentenced to five years probation and was required to pay restitution of $36,267 and a surcharge of $1,813.

Randolph Rachlin was videotaped while working as a salesman at a time when he was receiving disability benefits and claiming to his insurance company that he could not work. He pled guilty to Grand Larceny in the Fourth Degree; he received five years probation and was required to make restitution of $6,160.

Dannette Hogan defrauded an insurance company by falsely claiming to care for a patient in her home when, in fact, the patient was hospitalized during that period of time and the defendant did not care for her. The defendant pled guilty to Falsifying Business Records in the First Degree. She was sentenced to a Conditional Discharge and 250 hours of community service. She was required to make restitution of $1,921.

Thea Skupp, an insurance broker, collected insurance premiums from twelve commercial clients and failed to forward the money to the insurers. Her agency also submitted forged premium finance agreements and fraudulently received payments from a finance company. She pled guilty to Grand Larceny in the Third Degree. The defendant was sentenced to make restitution of $32,822.59, a $1,000 fine and a $5 crime victim's fee.

At year's end, the District Attorney announced a sweep of 13 defendants who had engaged in various forms of insurance fraud.

Charles Ammirati, owner of a truck hauling business, falsified a written document and submitted it to the State Insurance Fund and Worker's Compensation Board, claiming that an employee had been injured on the job; in fact, the employee worked for another truck hauling business which was owned by the defendant's wife and which failed to have Worker's Compensation insurance.

The defendant pled guilty to a felony under the New York State Worker's Compensation Law and is awaiting sentence.

David Baer falsely claimed that his automobile had been stolen at the Green Acres Shopping Center. Surveillance cameras established that Baer's claim was false. The defendant pled guilty to Insurance Fraud in the Fifth Degree; he was sentenced to a Conditional Discharge and to pay $90 in fees.

Gerardo Chacche was collecting Worker's Compensation benefits claiming to be injured and unable to work, when video surveillance disclosed that he was actively working as an automobile mechanic. The defendant was charged with Grand Larceny in the Third Degree and his case is pending in County Court.

Jacqueline Chapin was collecting Worker's Compensation benefits, claiming that she was injured and unable to work for her employer, United Parcel Service; videotape surveillance showed that she was working as a Town of Hempstead pool cleaner at that time. She was charged with Grand Larceny in the Third Degree and her case is pending.

Laurie Clark collected Worker's Compensation benefits by claiming that she was injured and unable to work at her job as a school bus driver, when she was working elsewhere as a taxi cab driver. She was charged with Grand Larceny in the Third Degree and Insurance Fraud in the Third Degree; her case is pending.

John Cusumano received Worker's Compensation disability benefits and ultimately was awarded a lump sum settlement from the State Insurance Fund based on fraudulent misrepresentations and false testimony before the Worker's Compensation Board. He pled guilty to Attempted Grand Larceny in the Third Degree and he was sentenced to five years probation and required to pay restitution of $40,527.

Joseph A. Dellorusso, an insurance broker, obtained premiums from his clients but failed to forward those premiums to the insurance carriers. The defendant pled guilty to Petit Larceny and has paid $20,000 in restitution. He is awaiting sentence in District Court.

Mario Kot submitted falsified certificates of insurance to a general contractor in order to avoid paying insurance premiums for Worker's Compensation coverage. This case is pending in District Court.

Carlo Munifo was charged with Grand Larceny in the Third Degree and Insurance Fraud in the Fourth Degree in connection with fraudulent claims that he submitted to an insurance company. This case is pending in County Court.

Bruce Newman submitted falsified certificates of insurance to a general contractor to obtain work as an asbestos abatement contractor and avoided paying insurance premiums for Worker's Compensation coverage. The defendant pled guilty to Criminal Possession of a Forged Instrument in the Third Degree. He was sentenced to a Conditional Discharge and 50 hours of community service. He was required to pay $500 in fines and charges.

Andre Oates submitted a false statement concerning his disability status in support of his Worker's Compensation claim. He was charged with Falsifying Business Records in the First Degree and Insurance Fraud in the Fifth Degree. His case is pending in District Court.

Noreen Torres fraudulently cashed her husband's Worker's Compensation checks for several months after his death and used the money for her own benefit. Her case is pending.

Alean Williams submitted to GEICO a forged letter from her alleged employer falsely stating that she was out of work, in support of a lost wage claim. She was charged with Grand Larceny in the Fourth Degree and Insurance Fraud in the Fourth Degree and her case is pending.

Martin Harris obtained $10,000 in Worker's Compensation benefits and $6,000 in medical payments by making false representations to the New York State Worker's Compensation Board. Although Harris claimed to be totally disabled, video surveillance proved that Harris had lied.  He pled guilty to Attempted Grand Larceny in the Third Degree early in 1999 and is awaiting sentence.

Kerry Alford defrauded Empire All City Insurance Company of $45,000. He pled guilty to Grand Larceny in the Fourth Degree and was sentenced early in 1999 to five years probation and to make restitution of $12,500 and a $625 surcharge.

Bruce Belmont falsely claimed that he was injured and unable to work when in fact he was working as a carpet installer. He pled guilty to Attempted Grand Larceny in the Fourth Degree and is awaiting sentence.